BASF Stock: Brazil Paint Unit Sale Boosts Market Position

BASF has achieved a significant strategic milestone with the sale of its Brazilian decorative paints business, Suvinil, to US-based Sherwin-Williams for $1.15 billion. The transaction, which includes a business unit that generated approximately $525 million in revenue last year, has positively impacted BASF's stock performance, driving shares up 0.5 percent to €51.20 on XETRA. This deal represents a crucial step in BASF's portfolio optimization strategy and marks the divestment of the company's only significant business-to-consumer segment. The sale encompasses two production facilities in northeastern and southeastern Brazil, along with approximately 1,000 employees, with the transaction expected to conclude in the second half of 2025.

Strategic Transformation Progress

The positive market response to BASF's strategic realignment is further evidenced by analyst projections, with average price targets suggesting additional upside potential at €53.84. This development aligns with the company's broader efficiency enhancement initiatives, including planned cost savings of one billion euros at its main site by the end of 2026. The stock's recent performance, including reaching new yearly highs, indicates strong investor confidence in BASF's transformation strategy.