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

comments closed

Related News

September 25, 2022

France and Sweden both launch ‘first of a kind’ hydrogen facilities

Chemical Value Chain

France has launched an offshore green hydrogen production platform at the country’s Port of Saint-Nazaire this week, along with its first offshore wind farm. The hydrogen plant, which its operators say is the world’s first facility of its type, coincides with the launch of another “first of its kind” facility in Sweden dedicated to storing hydrogen in an underground lined rock cavern (LRC).

September 25, 2022

NextChem announces €194-million grant for waste-to-hydrogen project in Rome

Chemical Value Chain

The project sets up the Hydrogen Valley in Rome, the first industrial-scale technological hub for the development of the national supply chain for the production, transport, storage and use of hydrogen for the decarbonization of industrial processes and for sustainable mobility.

September 25, 2022

The problem with hydrogen

Chemical Value Chain

At first glance, hydrogen seems to be the perfect solution to our energy needs. It doesn’t produce any carbon dioxide when used. It can store energy for long periods of time. It doesn’t leave behind hazardous waste materials, like nuclear does. And it doesn’t require large swathes of land to be flooded, like hydroelectricity. Seems too good to be true. So…what’s the catch?