Basf Weighs Sale of Catalyst Assets
German chemical giant BASF SE is considering the sale of its catalyst business, which could fetch up to €3 billion ($3.5 billion). The company is in the early stages of exploring a sale of the unit, which makes catalysts used in the production of fuels, chemicals and other products.
BASF is the world’s largest chemical company, with operations in more than 80 countries. The company has been focusing on its core businesses, such as chemicals, plastics and agricultural products, and has been divesting non-core assets.
Catalyst Business Overview
BASF’s catalyst business is a global leader in the production of catalysts used in the production of fuels, chemicals and other products. The business has a portfolio of more than 2,000 products, including catalysts for the production of gasoline, diesel, jet fuel, and other fuels. It also produces catalysts for the production of chemicals, such as ethylene, propylene, and other petrochemicals.
The business also produces catalysts for the production of specialty chemicals, such as pharmaceuticals, food additives, and other products. The business has a presence in more than 30 countries, with manufacturing sites in Europe, Asia, and the Americas.
Exploring Sale of Catalyst Business
BASF is exploring the sale of its catalyst business as part of its strategy to focus on its core businesses. The company has been divesting non-core assets in recent years, and the sale of the catalyst business would be the latest in a series of divestitures.
The company has hired Goldman Sachs Group Inc. to advise on the sale of the business. The sale process is in the early stages, and it is unclear how long it will take to complete the sale.
Potential Buyers
The sale of the catalyst business could attract interest from a number of potential buyers. Private equity firms are likely to be interested in the business, as it has a strong portfolio of products and a global presence.
Other potential buyers could include chemical companies, such as Dow Chemical Co. and DuPont Co., as well as oil and gas companies, such as ExxonMobil Corp. and Chevron Corp.
BASF’s Other Divestitures
BASF has been divesting non-core assets in recent years. In 2019, the company sold its leather chemicals business to private equity firm Advent International for €1.2 billion. In 2018, the company sold its construction chemicals business to Blackstone Group LP for €3.17 billion.
The company has also sold its gas trading business, its oil and gas exploration and production business, and its industrial lubricants business. The company has also sold its plastics business, its paper chemicals business, and its performance chemicals business.
BASF’s Strategy
BASF has been focusing on its core businesses, such as chemicals, plastics and agricultural products. The company has been divesting non-core assets in recent years, and the sale of the catalyst business would be the latest in a series of divestitures.
The sale of the catalyst business could fetch up to €3 billion, which would be a significant boost to the company’s bottom line. The sale would also allow the company to focus on its core businesses and continue to grow and expand.
Outlook
BASF is in the early stages of exploring a sale of its catalyst business, which could fetch up to €3 billion. The sale process is in the early stages, and it is unclear how long it will take to complete the sale.
The sale of the catalyst business could attract interest from a number of potential buyers, including private equity firms, chemical companies, and oil and gas companies. The sale would be the latest in a series of divestitures by BASF, as the company continues to focus on its core businesses.