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BASF to Acquire Full Ownership of Alsachimie Joint Venture

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BASF SE (BASFY - Free Report) and DOMO Chemicals have reached an agreement granting BASF the right to acquire DOMO Chemicals’ 49% stake in the Alsachimie joint venture (JV). Notably, BASF already holds a 51% stake in the JV. In line with legal requirements, the proposed transaction will first undergo consultations with Alsachimie’s relevant social bodies. After these consultations, the two companies plan to sign a binding purchase agreement. BASF and DOMO Chemicals expect the transaction to close by mid-2025.

Gaining full ownership of Alsachimie would mark a significant milestone for BASF, reinforcing its strong presence at the Chalampé site in France—its key European hub for polyamide (PA) 6.6 precursor production. With sole control of the JV, BASF would be better positioned to bolster its operations, enhance production efficiency and deepen backward integration into critical raw materials, thereby strengthening its footprint across the entire PA 6.6 value chain.

By acquiring DOMO Chemicals’ shares, BASF is reinforcing its leadership and long-term dedication to the PA 6.6 value chain, while positioning itself for future growth alongside customers in key industries like automotive and textiles.

Shares of BASFY have lost 7.9% over the past year compared with a 28.4% decline of its industry.

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BASFY’s Rank & Key Picks

BASFY currently carries a Zacks Rank #3 (Hold).

Better-ranked stocks in the basic materials space include Carpenter Technology Corporation (CRS - Free Report) , Alamos Gold Inc. (AGI - Free Report) and Hawkins, Inc. (HWKN - Free Report)

Carpenter Technology currently carries a Zacks Rank #1 (Strong Buy). CRS beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 11.1%. The company's shares have soared 110% in the past year. You can see the complete list of today's Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Alamos Gold current-year earnings is pegged at $1.29 per share. AGI, carrying a Zacks Rank #1, surpassed the Zacks Consensus Estimate in two of the trailing four quarters, while missing twice, with the average earnings surprise being 1.4%. The company's shares have rallied 58.1% in the past year.

Hawkins, which currently carries a Zacks Rank #2 (Buy), beat the consensus estimate in one of the trailing four quarters, while missing thrice. In this time frame, it has delivered an earnings surprise of roughly 8.2%, on average. The company's shares have rallied 43.6% in the past year.

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