BASF has announced plans to partially divest its Agricultural Solutions division through a minority IPO in 2027, marking a major shift in the global agribusiness landscape. The move is part of the company’s broader “Winning Ways” strategy to streamline operations, boost capital efficiency, and sharpen its focus on core specialty chemicals.
Strategic restructuring under way
The Agricultural Solutions division, which generated €9.8 billion in sales in 2024, will be legally separated and equipped with a dedicated ERP system to prepare for the listing. BASF confirmed to AgTechNavigator that it will remain the majority shareholder post-IPO, positioning the unit for greater strategic focus and operational flexibility.
While BASF declined to comment further, the company has previously outlined its “Winning Ways” strategy as a roadmap for portfolio steering, capital allocation, and performance culture – placing farmer-centric innovation at the heart of its agricultural business.
Innovation, autonomy, and market expansion
Observers see the partial divestment as a way to unlock value and accelerate innovation in crop protection, seed development, and digital agriculture. The move is expected to grant BASF Agricultural Solutions greater autonomy to expand in high-growth markets such as Asia and the global seed sector.
Despite concerns from labour unions over potential job losses and site closures, the restructuring is viewed by many as a strategic pivot toward sustainability-linked innovation and faster responsiveness to market shifts.
Farmer-centric R&D remains central
BASF has emphasized that farmer needs will remain central to its innovation strategy. The company continues to invest in hybrid seeds, pest-resistant crops, and digital tools, supported by BASF Venture Capital’s backing of agtech startups focused on climate-smart farming.
The IPO is expected to enhance the division’s ability to pursue targeted investments and partnerships, aligning with BASF’s goal to become a more integrated provider of sustainable solutions for farmers.
Part of a broader industry trend?
The announcement follows also similar moves by competitors, including Corteva’s decision to split its seeds and pesticide units into separate listed entities. It suggests BASF’s IPO could be part of a wider trend among agribusiness giants seeking to streamline operations and respond more nimbly to global food system challenges with farmer-centric technology and innovation at their core.
