BASF Advances Nanjing Electronics Plant and Chile Exit as Evonik Standoff Persists
Published on 11/08/2026 at 16:21 | Editorial boerse-global.de
BASF has moved on several fronts in a single week, signing an investment agreement for a new electronics materials production site in Nanjing, arranging the sale of its Palatal business in Chile, and continuing its share buyback — all while its pursuit of Evonik remains blocked and its stock slid 2.9% on Friday.
The Nanjing agreement, signed Tuesday with the Nanjing Jiangbei New Area, targets production start-up by the end of 2028, according to the company. The same day, BASF and ParagonCorp put pen to paper on a letter of intent to explore possible cooperation in science-backed cosmetic innovation.
On the dealmaking side, BASF agreed Friday to sell its Palatal business in Chile to ALTA Performance Materials. The transaction is subject to customary conditions, including regulatory approvals, and has been agreed but not yet completed.
Evonik Rejects Improved Offer
Evonik's resistance to BASF's takeover approach held firm. On 30 October the target company turned down BASF's improved offer of EUR 24 per share, which media reports valued at roughly EUR 11.2 billion. Evonik said it would not enter negotiations but signalled willingness to exchange information on a confidential basis. Bloomberg reported the two companies planned to discuss Evonik's medium-term targets over the weekend. Handelsblatt reported Thursday that Evonik interim chief Claus Rettig reaffirmed the rejection of the EUR 24-per-share bid, which values Evonik at more than EUR 11 billion.
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Analyst sentiment shifted modestly midweek. LBBW raised its price target on BASF from EUR 56 to EUR 57 on Wednesday while keeping its "Hold" rating, according to media reports.
Buyback and Raised Guidance
BASF reported repurchasing about 355,000 of its own shares in the period from 26 to 30 October inclusive, disclosed in a further announcement on 2 November. Since the programme began on 3 August, the company has bought back a total of around 7.6 million shares.
The buyback rests on an upgraded outlook. Roughly two weeks ago BASF raised its full-year 2026 guidance for EBITDA before special items to a range of EUR 7.4 billion to EUR 7.8 billion, up from the previous EUR 6.9 billion to EUR 7.7 billion. For the third quarter of 2026, BASF reported revenue of EUR 16.4 billion.
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Recognition has also come from the automotive sector. On Thursday BASF, together with Stellantis and L&L Products, received an SPE Automotive Innovation Award for a tunnel reinforcement in the 2027 model-year Jeep Grand Cherokee. That followed a Wednesday honour, when BASF, Toyota and Vuteq took the SPE Automotive Innovation Grand Award for the cargo bed of the 2026 model-year Toyota Tacoma.
Friday's share decline came amid a broad European selloff, with Reuters reporting fading risk appetite over concerns about AI investments following the US election outcome. The DAX fell more sharply than other regional bourses.
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