BASF Maps Nanjing Electronics Plant as Evonik Talks and Chile Exit Reshape Portfolio
Published on 11/08/2026 at 13:10 | Editorial boerse-global.de
BASF has set its sights on a new electronics-materials production site in Nanjing, signing an investment agreement on Tuesday with the administration of the Nanjing Jiangbei New Area. According to company statements, the plant is scheduled to come on stream by the end of 2028. The move underscores the German chemicals group's push into higher-margin specialty offerings even as it trims assets elsewhere.
On the same front, BASF agreed on Friday to sell its Palatal business in Chile to ALTA Performance Materials. The deal remains subject to customary conditions, including regulatory approvals — meaning it is signed but not yet closed.
Evonik Standoff Persists as Weekend Meeting Looms
Resistance to BASF's takeover approach for Evonik shows no sign of softening. Handelsblatt reported on Thursday that Evonik's interim chief, Claus Rettig, reaffirmed his rejection of BASF's offer of 24 euros per Evonik share, a bid that values the Essen-based specialty chemicals maker at more than eleven billion euros.
Yet lines of communication appear open. Bloomberg reported on Friday that executives from the two companies were due to meet over the weekend, with Evonik expected to present its medium-term targets for lifting shareholder value, according to people familiar with the matter. The Süddeutsche Zeitung, meanwhile, reported that BASF is cutting thousands of jobs while pointing to improving business and its courtship of Evonik.
Should investors sell immediately? Or is it worth buying BASF?
Guidance Raised, Buyback Rolls On
Behind the portfolio maneuvering sits a brighter earnings picture. Roughly two weeks ago, BASF lifted its forecast for full-year 2026 EBITDA before special items to a range of 7.4 billion to 7.8 billion euros, up from the 6.9 billion to 7.7 billion euros previously guided. Third-quarter 2026 sales came in at 16.36 billion euros, or about 16.4 billion euros on a rounded basis.
Capital returns to shareholders are proceeding in parallel. On 2 November, BASF disclosed the repurchase of 355,128 of its own shares under its buyback program, covering the period from 26 to 30 October inclusive.
Shares Caught in Broad European Selloff
The stock could not escape the wider market mood. BASF shares fell 2.9% on Friday as a broad European selloff swept the region, with Reuters attributing the weakness to waning risk appetite over AI-investment concerns following the U.S. election outcome. The DAX declined more sharply than other regional benchmarks.
BASF at a turning point? This analysis reveals what investors need to know now.
Analysts, for their part, made only a modest adjustment. On Wednesday, LBBW raised its price target on BASF from 56 to 57 euros while keeping its rating at "Hold."
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