BASF Trims Mining and Chilean Assets as Jefferies Flags Margin Squeeze

Jefferies turned cautious on BASF on Wednesday, cutting the Ludwigshafen group to "Underperform" from "Hold" while leaving its price target untouched at EUR 44. Analyst Priyanka Patel sees the company's 2027 operating result landing 5 percent below consensus, pointing to eroding margins, stubborn overcapacity and higher gas prices — with no meaningful pickup in demand to offset the pressure.

The broker move landed in the middle of a busy week for BASF's portfolio. On Thursday the chemicals maker signed an agreement to sell its global mining business to France's SNF. The package covers roughly 140 employees and the Cork production site, with closing expected in 2027 subject to regulatory approvals and other customary conditions.

A second divestment is taking shape in South America. ALTA Performance Materials signed an agreement with BASF on November 6 to acquire the company's Palatal business in Chile, including the Concón site.

Not every deal on the table is progressing. According to Reuters, Evonik held firm on Monday in rejecting BASF's raised takeover offer, even after talks between the two companies' leadership, and no further meetings were planned. BASF is the potential buyer in that effort, with Evonik the target.

On the investment side, BASF officially commissioned its new MDI plant at the Geismar complex in Louisiana on Wednesday. The project carries a price tag of around USD 1 billion and lifts annual production capacity at the site to roughly 600,000 tonnes — close to double the previous level.

The company also announced on Tuesday that it will switch its European polyisobutene production for external customers entirely to renewable electricity. The conversion of the eligible Oppanol B and Glissopal products is scheduled for completion from January 2027.