Sector News

BASF ready to react to potential takeover approach as market value declines, says CEO

June 23, 2020
Chemical Value Chain

BASF, at today’s virtual annual shareholders’ meeting, said it is alert to a possible risk of an unsolicited takeover approach or an attack from activist investors and was ready to react.

Speaking at the meeting, CEO Martin Brudermüller said he could not rule out unwanted attempts to take control of the company, given the decline in its market value.

Brudermüller was responding to a question posed by Ulrich Hocker, president of DSW, a German association for private investors, who wanted to know whether BASF has a defense strategy against hostile takeovers, especially from China, and how BASF assesses the current market situation.

“The risk that BASF, given its current market capitalization, could become the target of a takeover or of activist investors cannot be ruled out. Consequently, we monitor market developments and prepare ourselves for such situations. A successful, transparent corporate strategy that highlights future potential and the associated correct reflection of our value on the capital markets are the most effective instruments against unwanted external influence. In addition, we ensure that we achieve the best performance in the respective market environment and implement the strategic measures to improve performance consistently and quickly. At the same time, we are in continuous dialogue with all interest groups in order to take their demands and expectations into account and explain our strategy,” Brudermüller says.

BASF’s market value has lost more than 20% this year to €49 billion ($55 billion) as the COVID-19 pandemic reduced global demand for its products.

By: Natasha Alperowicz

Source: Chemical Week

Join the discussion!

Your email address will not be published. Required fields are marked *

Related News

January 16, 2021

INEOS reduces planned Antwerp investment

Chemical Value Chain

LinkedIn Twitter Xing EmailINEOS has postponed work on the propane dehydrogenation (PDH) unit at its Antwerp, Belgium site, opting to prioritise construction of the cracker, a company spokesperson said on […]

January 10, 2021

TechnipFMC resumes plans to split company

Chemical Value Chain

TechnipFMC says it has resumed activities related to the previous announced separation of the company into two separate pure-play businesses, TechnipFMC and Technip Energies.

January 10, 2021

Solvay’s extended maternity, paternity & co-parent policy goes into effect

Chemical Value Chain

Solvay’s new policy increases maternity leave to 16 weeks. It is now available to any co-parent regardless of gender or sexual orientation; it also includes parents who adopt. The parent employed by Solvay will receive 100% of his or her salary during this leave period.

Send this to a friend