BASF has ruled out selling its plastics business and envisages only smaller portfolio adjustments amid the wave of consolidation in the sector, the head of its plastics division told Reuters. John Feldmann also said in an interview he welcomed the emergence of strong competitors that can ensure market stability.
He saw no signs of any imminent weakening of the strong demand that has kept plastics prices high.
The chemicals industry has seen big deals this year. Saudi Basic Industries Corp bought General Electric's GE Plastics for $11.6 billion and Basell acquired Huntsman Corp for $9.6 billion including debt. BASF's plastics division is a big player, but Feldmann said it was unlikely to plunge into mergers and acquisitions.
Asked if the plastics business was a divestment candidate, he said: "No This is a core business that fits excellently with our group strategy, that has huge growth potential and that is very profitable. There is no reason to get out."
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