(Sept 26): BASF SE will cut its dividend as part of a broad reset that could involve further plant closures in Germany to counter high energy prices and a persistent slump in China.

The new measures include preparing its agricultural unit for a possible listing, confirming a Bloomberg report from earlier this month. The segment, which makes crop protection products like herbicides and fungicides, reported about €10 billion (RM41.27 billion) in sales last year. 

The company’s shares fell as much as 2.3%, bringing its decline this year to roughly 9.7%.

Chief executive officer Markus Kamieth, who took over in April, is reorienting the company as Germany’s energy-intensive industries continue to struggle with high energy prices, even after they receded from record levels hit in the wake of Russia’s invasion of Ukraine. The company is also confronting a decline in global demand, particularly in China, which has driven profit growth across industries in recent decades.

The company said it’s considering a minority share sale for the agricultural unit, which is set to finalise its carveout in 2027.

At the same time, the company is coping with a costly transition to cleaner technologies. BASF said it sees €600 million in annual costs related to the shift in the coming years.

The dividend will be at least €2.25 per share, the lowest in more than a decade. 

The German manufacturer aims to improve returns in its main chemicals, industrial solutions and nutrition businesses. As a next step, the company is preparing the sale of its decorative paint business in Brazil. BASF is also looking for partnerships for its battery unit.

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