BASF's Twin Bet: Crop-Science Spinoff Prep Meets a Seven-Patent Salvo Against Apple

BASF picks four banks to steer its Agricultural Solutions listing, targeting readiness by mid-2027 as it reshapes its portfolio.

BASF has handed a quartet of heavyweight banks the job of steering its agricultural unit toward public markets. Citi, Deutsche Bank, Goldman Sachs and J.P. Morgan will act as global coordinators for the planned listing of Agricultural Solutions, according to Reuters, with the Ludwigshafen group targeting readiness by mid-2027. Whether the flotation actually goes ahead — and precisely when — remains an open question, but the company has made clear the move sits at the heart of its broader portfolio overhaul.

That overhaul is already well advanced. BASF has offloaded its Coatings business at an enterprise value of EUR 7.7 billion, generating a pre-tax cash inflow of EUR 5.8 billion. Media reports indicate that 80 percent of the worldwide Agricultural Solutions operation had been transferred into standalone legal entities by September. The eventual Frankfurt listing is intended to take the form of a Societas Europaea.

A reluctant industry backdrop

The restructuring unfolds against a hesitant chemical sector. Although sales have risen and production picked up in the spring, the German Chemical Industry Association (VCI) sees no genuine turning point yet. BASF is nonetheless pressing ahead with targeted spending at its home site, where a fully modernized SCF plant came on stream on 2 September to bolster output of acid chlorides and chloroformates — a move aimed at safeguarding and upgrading core manufacturing even as sector sentiment stays muted.

Seven patents, one Texas courtroom

Legal matters are running in parallel. Roughly two weeks ago, BASF subsidiary trinamiX filed suit against Apple at a federal court in Midland, Texas. Reuters reports that trinamiX accuses the US electronics giant of infringing seven patents covering facial, skin and material recognition through the Face ID features in iPhone and iPad models. The BASF unit is seeking unspecified damages and an injunction barring further use of the protected technology.

The bull case: hidden value and cash returns

For investors, the strategic split separates lucrative specialty operations from the traditional chemical core. BASF turned in strong second-quarter 2026 figures, powered by an 11.5 percent price increase and a 7.3 percent rise in volumes, and management raised its full-year guidance. In the optimistic reading, the group evolves from a cumbersome integrated player into a leaner holding structure with focused units. Retaining 40 percent of Surventis preserves participation income from the former coatings business, while the cash inflow delivers a hefty boost to the balance sheet. The agricultural arm has been strengthened too: since late March, the acquisition of AgBiTech has added biological insect-control solutions to the portfolio. Should the spinoff land as projected by mid-2027, substantial hidden value could be unlocked, and a EUR 1.0 billion buyback program launched in August offers shareholders further support.

The bear case: separation costs and cyclical exposure

Risks are just as real. The split demands complex internal separation work, including a standalone ERP system for the agricultural unit — large-scale projects that can bring friction losses and administrative costs weighing on operations. By partly shedding stable businesses, BASF also gives up valuable buffers against cyclical swings. If volume gains in the classic chemicals business cannot be sustained in a weaker global economy, margins could come under pressure quickly. And the new-issue market itself is uncertain: a darker equity climate by 2027 could force the agricultural listing to accept far less favorable terms than hoped.

Where the shares stand

The stock closed yesterday at EUR 51.74, a gain of 16 percent since the start of the year, and currently trades at EUR 51.91 — within striking distance of its 52-week high of EUR 55.05. On the charts, consolidation is proceeding in orderly fashion. As long as the price holds above its 50-day moving average of EUR 50.73, the broader uptrend since January stays intact; a sustained break below that support would risk extending the recent consolidation toward lower holding zones. The coming months should bring clarity on operating conditions, and those dates form the next concrete catalysts for the share's directional decision.