BASF SE BASFY recently agreed with Solenis, a global producer of specialty chemicals based in Wilmington, DE, to divest its flocculants business for mining applications. This move aligns with BASF's strategy to optimize its portfolio by focusing on core strategic areas. The transaction, which awaits approval from the relevant merger control authorities, is anticipated to conclude in the second half of 2024. Financial details of the deal remain undisclosed.
This strategic move includes renowned trademarks such as Magnafloc, Rheomax, Alclar, Alcotac, Jetwet, Aerowet and Alcotech, all known for their solid-liquid separation and material handling capabilities in mining. The business boasts a strong presence in key mining regions worldwide.
BASF SE Price and Consensus
BASF SE price-consensus-chart | BASF SE Quote
BASF consistently reassesses its product portfolio to sharpen its strategic focus and maintains crucial strategic partnerships. It identified Solenis as an ideal partner for its flocculants portfolio in mining, confident that this divestiture will enhance the product range to meet customer needs better.
The agreement with Solenis is expected to deliver significant value to BASF's mining customers. This divestiture will allow BASFY to concentrate on the ongoing development and commercialization of its flotation reagents and expand its innovative solutions in solvent extraction and leaching.
This move mirrored a similar transaction in 2019 when the company transferred its paper wet-end and water chemicals business to Solenis. The deal created a leading global solutions provider for the paper and water treatment industries. It included mid- to long-term supply agreements, commercial relationships and the divestiture of production sites in Bradford and Grimsby, the U.K., and Kwinana, Australia.
In the past year, the stock has moved down 8.7% compared with the industry’s 9.4% fall in the same period.
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Zacks Rank & Key Picks
BASF currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Basic Materials space are Carpenter Technology Corporation CRS, Eldorado Gold Corporation EGO and Kinross Gold Corporation KGC. Carpenter Technology, Eldorado Gold and Kinross sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for CRS’s current-year earnings is pegged at $4.44, indicating a year-over-year rise of 289.5%. CRS’ earnings beat the Zacks Consensus Estimate in three of the last four quarters while matching it once, the average earnings surprise being 15.1%. The company’s shares have soared 110.9% in the past year.
The Zacks Consensus Estimate for EGO’s current-year earnings is pegged at $1.13, indicating a year-over-year rise of 98.3%. EGO’s earnings estimates have increased 10% in the past 60 days. EGO beat the consensus estimate in the last four quarters, with the average earnings surprise being 430.7%. The stock has rallied 50.1% in the past year.
The Zacks Consensus Estimate for Kinross's current-year earnings is pegged at 56 cents, indicating a rise of 27.3% from the year-ago levels. KGC beat the consensus in the last four quarters, with the average earnings surprise being 46%. The stock has surged nearly 77.5% in the past year.
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