The chemical company BASF is facing a comprehensive realignment. In particular, the areas of agricultural chemicals and coatings are to be restructured, according to Bloomberg, citing confidential sources. Investors reacted positively to this news, with the stock temporarily rising by up to 5.8 percent on Wednesday.

Here is the translation of the heading to English:

The new CEO Markus Kamieth is set to present specific plans for strategic realignment at the capital markets day on September 26 and 27. A particular focus is a possible IPO of the agricultural chemicals division, valued at up to 20 billion euros, as well as potential partial sales in the coatings sector.

The measures are intended to enable significant cost savings and debt reduction for the group. The dividend policy might also be reconsidered. According to the report, BASF is also expected to present new information on the struggling battery business, which will also be discussed on Capital Markets Day.

Already last year, BASF had initiated the first steps to spin off certain divisions. A large part of the oil and gas business was sold at that time. The chemical company continues to struggle with declining profits and a challenging market environment, particularly in agrochemicals.