BASF positioned to pick up disposals from mega-merger antitrust reviews

10 June 2016 – German chemical firm BASF [ETR: BAS] is positioning for divestments arising from antitrust reviews of the numerous mega-mergers taking place in the sector, according to a source briefed and a sector banker following the situation.

BASF is more likely to look at these divestments than make a counterbid for Monsanto [NYSE:MON], they said.

On 23 May, Bayer [ETR:BAYN] made an all-cash offer to acquire Monsanto, which was rejected. This followed tie-ups agreed by Syngenta [VTX: SYNN]/ChemChina and Dow Chemical [NYSE: DOW]/DuPont [NYSE: DD].

BASF is not planning to counter-bid for Monsanto and had several opportunities to submit a counter offer for Syngenta, the source said.

One cross-shareholder in Bayer and BASF contrasted the former’s penchant for significant acquisitions with the latter’s capital discipline. BASF management “invests for the long term [with] good returns,” he added.