BASF SE ADROTCQX
BASF: A Cyclic Stock Offers Opportunities In A Volatile Market
Seeking Early Retirement
Seeking Early Retirement
BASF Continues To Execute A Proven Plan
Stephen Simpson, CFA
Stephen Simpson, CFA
Thu, Oct. 27, 8:14 AM
Thu, Oct. 20, 6:45 PM
- Morgan Stanley (NYSE:MS) stands to collect $120M if Bayer (OTCPK:BAYRY) closes its $57B takeover deal for Monsanto (NYSE:MON), which would be the second-largest deal fee for a single bank on record.
- The big payout is a bright spot in an otherwise down year for M&A activity, as global deal volume YTD currently stands at ~$2.6T, 24% lower than the same period in 2015.
- The payments were disclosed in a MON proxy filing, which also showed the company held takeover talks with three other groups - identified by Financial Times as BASF (OTCQX:BASFY), Koch Industries and China's Sinochem - before agreeing to the pending deal with Bayer.
Wed, Oct. 19, 3:57 PM
- BASF (OTCQX:BASFY) says it will gradually restart production at key petrochemical sites at its Ludwigshafen headquarters after this week's deadly fire and explosion had forced it to close them.
- BASF says the two Ludwigshafen steam crackers will gradually resume output over the next few days because alternative supply lines will circumvent the disaster area, and downstream sites dependent upon supply from the steam crackers also would resume operations.
- BASF says 24 sites including the steam crackers currently are shut or working at reduced loads as a result of the accident, which was considered the worst in the German chemical industry in more than 20 years.
Tue, Oct. 18, 8:27 AM
- BASF (OTCQX:BASFY) faces a prolonged shutdown of production units at its chemical plant complex and headquarters in Ludwigshafen, Germany, where yesterday's explosion and fire killed two employees and injured dozens.
- BASF says two steam crackers at the plant remain halted and another 20 facilities are either stopped or only partially working.
- Analysts say some production units could be down for months as investigations by the company and government agencies take place, possibly tightening European ethylene markets in 2017, which could benefit Dow Chemical (NYSE:DOW) and LyondellBasell Industries (NYSE:LYB).
- Baader Bank analyst Markus Mayer says the closing of the two steam crackers mostly will impact BASF's basic chemicals division, which makes up ~21% of sales and 30% of EBITDA; he analyst estimates that 6% of annual earnings could be directly impacted by the fire, with as much as 3% of EBITDA at risk because the shutdown may last more than a quarter.
Mon, Oct. 17, 10:02 AM
- Several people have been injured and some are missing after explosions at two German chemical plants owned by BASF (OTCQX:BASFY -0.7%), which forced the company to shut down some production facilities.
- BASF says there was an explosion and a fire broke during work on pipelines in the north harbor area of its Ludwigshafen site, which is the world's largest chemical complex, covering an area of 10 sq. km and employing 39K workers.
- BASF also is investigating the cause of an explosion at its Lampertheim facility, which makes additives for plastics.
Tue, Oct. 11, 2:57 PM
- BASF (OTCQX:BASFY -0.5%) releases preliminary Q3 results that showed a decline in earnings and sales from a year earlier, due largely to its divestment of its gas trading activities, but ahead of analyst consensus estimates.
- BASF says Q3 operating earnings before special items fell 5.4% Y/Y to €1.5B (~$1.7B) from €1.6B a year ago, as sales fell 19.6% Y/Y to €14B; the company did not provide a net profit figure, but will release full Q3 results on Oct. 27.
- BASF also reiterates its full-year guidance, expecting sales to fall by 6% or more while operating profit excluding special items should come in as much as 10% below last year.
Wed, Jul. 27, 1:56 PM
- BASF (OTCQX:BASFY) and Bayer (OTCPK:BAYRY) cut the outlook for their agrochemicals businesses, which analysts say could add to the urgency for global consolidation that has swept the industry.
- Both German companies reported Q2 earnings today that were hurt by lower demand for the herbicides and pesticides made by their crop sciences divisions, as a global slump in commodities prices hurts farmers’ incomes.
- “The agriculture market has gotten more difficult and that can certainly be a trigger for market consolidation," says NordLB analyst Thorsten Strauss, adding that cheap financing conditions also play a role.
- Bayer says full-year profit for its agrochemicals division likely will decline by a low-single-digit percentage, instead of rising as it had previously projected.
- Monsanto’s (NYSE:MON) negotiating position in Bayer's takeover offer has not become stronger, according to Commerzbank's Daniel Wendorff, noting that Bayer can still argue that the weak market environment in crop science will persist.
Wed, Jul. 27, 9:10 AM
Mon, Jul. 25, 11:31 AM
- Total's (TOT -2.5%) stake in German surface finishing and metal plating company Atotech is expected to receive bids of more than €3B ($3.3B) from chemicals firms Umicore (OTCPK:UMICF) and Sinochem by tomorrow's deadline, Reuters reports.
- Arkema (OTC:ARKAF), a former TOT subsidiary, and BASF (OTCQX:BASFY) have looked at Atotech but are seen as unlikely partners, while P-E firms such as CVC, Cinven, BC Partners, Advent, Bain and Carlyle are expected to submit bids, according to the report.
- Atotech, which generates ~$1B in annual sales, is TOT's sole remaining specialty chemicals unit after the sale of Bostik to Arkema in 2014.
Fri, Jul. 15, 5:14 AM
- Even though Bayer (OTCPK:BAYRY) has sweetened the pot in its attempt to win Monsanto (NYSE:MON), analysts suggest the company is likely to reject the roughly $65B offer and could pursue other transactions such as combining with BASF's (OTCQX:BASFY) agro-chemicals unit.
- "I don't think they believe selling for $125 (per share) today is in the best interests of shareholders... and I do believe they are still considering being a consolidator and not a consolidee," said Chris Kapsch, analyst at BB&T Capital Markets.
Thu, Jul. 14, 12:12 PM
- Monsanto (MON +3.2%) spikes higher after Bayer (OTCPK:BAYRY -0.6%) says it increased its takeover offer for the company to $125/share, after its initial $122 bid was rejected.
- The new offer may make a takeover more palatable for MON shareholders but also prompt concerns among Bayer investors about the German company's deepening financial strain.
- Bloomberg reported yesterday that MON had revived talks with BASF (OTCQX:BASFY +3.4%) about a possible combination of their agrochemicals businesses.
Thu, Jul. 14, 3:54 AM
- BASF (OTCQX:BASFY) has declined to comment on a report Monsanto (NYSE:MON) is looking into a series of possible deals, including the potential acquisition of its agrochemicals unit.
- The news comes after Monsanto rejected a buyout offer from a different Germany company - Bayer (OTCPK:BAYRY) - back in May.
- BASF shares are in the green this morning, up 3% in Frankfurt, but the wider DAX is on the march higher too.
Wed, Jul. 13, 5:17 PM
- Monsanto (NYSE:MON) +1.7% AH following a Bloomberg report that it could look to acquire BASF's (OTCQX:BASFY) agrochemicals unit as an alternative to the proposed and rejected takeover offer from Bayer (OTCPK:BAYRY).
- MON is exploring various transactions, including the potential acquisition of BASF’s ag solutions unit, and in return, BASF likely would receive newly issued shares in MON, according to the report.
- MON’s board is said to be split over the merit of potential deals with rivals BASF and Bayer, with some execs eager to remain independent while others prefer a takeover.
Wed, Jun. 29, 2:47 PM
- Universal Display (OLED +1.9%) is higher after agreeing to acquire BASF's (OTCQX:BASFY +2.3%) organic light emitting diode intellectual property assets for ~€87M.
- OLED says the assets include more than 500 issued and pending patents around the world, and are aimed at accelerating development of commercial blue phosphorescent emissive materials.
- Needham reiterates a Buy rating and $69 price target on OLED, saying that combined with last week's acquisition of a contract research firm specializing in advanced materials development, the moves are a good use of cash that could erect additional barriers against competitors as OLED displays gain broader adoption.
- Even as it reiterates a Hold rating, Gabelli notes that light blue and dark blue emitter materials are "the holy grail" of OLED emitter materials, and the company will continue to strive to be able to launch the first commercial light blue and dark blue emitter materials.
Wed, Jun. 22, 3:35 PM
- Aspen Aerogels (ASPN +22.1%) pops 22% on news of an expanded strategic partnership with BASF (OTCQX:BASFY +0.9%), which includes a commitment to the exclusive supply of its Spaceloft A2 product for incorporation within BASF's aerogel enhanced slentex wall system.
- BASF agrees to make a low double-digit million investment toward the construction of ASPN's new manufacturing plant and provide technical support in targeting manufacturing productivity, product cost and profit margins.
- BASF says the agreement, which will run through 2027, paves the way for the two companies to develop new aerogel products and technologies.
Fri, Jun. 17, 7:15 AM
- Albemarle (NYSE:ALB) agrees to sell its Chemetall surface treatment business to BASF (OTCQX:BASFY) for $3.2B.
- ALB acquired Chemetall, a supplier of specialty chemicals used in surface treatment of metals and plastics, as part of its purchase of Rockwood Holdings in 2014.
- ALB says the sale will help it invest “in the future growth of our high-priority businesses,” reduce leverage and return capital to shareholders.
- Chemetall reported $52.5M in EBITDA during Q1, up 14% Y/Y.