BASF may intervene in the "Dow DuPont" merger and stir up the global industrial landscape

According to foreign media reports, the global industrial giant BASF is evaluating the possibility of bidding for DuPont
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Since in December 2015, DuPont and Dow Chemical had announced that the two companies would formally merge with their entire shares, BASF's move may hinder the merger and disrupt the global industrial landscape
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The British "Financial Times" reported that BASF hired Deutsche Bank and Citibank to carry out work related to the transaction, but the transaction was considered extremely unlikely due to suspected antitrust investigations
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A former BASF consultant said that the possible result is that BASF acquires assets that Dow Chemical and DuPont have divested through antitrust licenses
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Affected by acquisition rumors, DuPont's share price jumped 5% in the US market after hours of trading on March 4.
BASF has been seeking the possibility of a merger with DuPont and has negotiated with it since last year
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However, the negotiations that took place before the merger between DuPont and Dow Chemical did not yield a final result
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DuPont and Dow Chemical announced that in December 2015, the two companies will formally merge with 100% shares, each holding 50% of the shares
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The merger transaction between Dow and DuPont is expected to be completed in the second half of 2016.
The new company "Dow DuPont" currently has a market value of US$111 billion.
In terms of sales revenue, it has become the world's second largest chemical company after BASF.

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In a recent interview, BASF CEO Bo Kaci also stated that he will face large-scale acquisitions with a very cautious attitude, reducing the possibility of this transaction
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BASF's recent successive acquisitions were blocked and lost to China National Chemical Corporation in the bid for the Swiss agricultural company Syngenta
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Some analysts say that the acquisition of DuPont will help BASF enhance the strength of the agrochemical sector, making it the second largest seed producer after Monsanto.
Their products include genetically modified corn seeds that can resist the effects of insects
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Bloomberg quoted James Sheehan, an analyst at the investment bank Suntrust Robinson Humphrey, as saying that BASF does not have a seed industry sector, so the merger with DuPont can help it reinforce this shortcoming.

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Sean said that DuPont is very suitable for BASF, and the two can complement each other to achieve synergies
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Both DuPont and BASF declined to respond to this news
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Due to the weak global economy, the chemical industry has been hit to a certain extent, BASF's performance has been challenged, and at the same time it has brought opportunities for acquisitions of peers
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The latest financial report shows that BASF's 2015 annual sales fell 5% to 70.
4 billion euros
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The sales price of almost all business units dropped by 9%, mainly due to the sharp drop in raw material prices
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Among them, BASF's sales in the fourth quarter of 2015 were 13.
9 billion euros, a year-on-year decrease of 23%.
"Global economic risks continue to rise
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However, we are still committed to increasing sales in all business areas
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However, it was affected by the divestiture of natural gas trading and storage businesses.
, BASF Group’s sales will drop significantly
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In 2016, EBIT excluding special items is expected to be slightly lower than the previous year
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In the current volatile and challenging environment, whether this goal can be achieved is related to the trend of oil prices It's closely related
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" Bo Kaci said
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