BASF: operational reorganization and reduced dividend

(CercleFinance.com) - German chemicals group BASF, in search of a new lease of life in recent months, announced on Thursday a reorganization plan and its intention to reduce its dividend by 33%.


In a press release, BASF states that it will only pay an annual dividend of 2.25 euros per share from next year, compared with 3.40 euros up to now, equivalent to a total payout of two billion euros per year.

In addition to this coupon - which should represent a total payout of eight billion euros to its shareholders over the period 2025-2028 - share buy-backs will be added, which should amount to around four billion euros, the company points out.

On a strategic level, BASF has announced that its activities in chemicals, materials, industrial solutions, nutrition and health will henceforth be considered as 'core businesses'.

Conversely, its activities in environmental catalysts, battery materials, coatings and agricultural protection are to become independent entities.

Markus Kamieth, Chairman of the Management Board, explains that he wants the chemical group to become a partner helping its customers to prepare for their 'green transformation', and to create value from the activities that will be discontinued.

BASF, which already sold off its oil and gas activities this year for two billion euros, has already indicated that it is preparing to sell its decorative paints division in Brazil.

On the Frankfurt Stock Exchange, the share price fell by more than 2.7% in the wake of these announcements, posting by far the biggest drop on the DAX index.

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