BASF Looks for Gas M&A Opportunities

Germany’s BASF reiterated its interest for takeover targets in the oil and gas industry, in light of strong financial results in 2013 and a positive outlook for 2014. 

The world’s biggest chemical maker posted quarter profit that beat forecasts. Sales of BASF Group in the fourth quarter of 2013 were €18.1 billion, slightly above the same period of the previous year. Volumes increased in all segments.

“We do not expect strong tailwinds this year either. Nevertheless, we are cautiously optimistic with regards to global economic development. The world economy is expected to grow slightly faster in 2014 than in 2013, despite continuing volatility,” Kurt Bock, Chairman of the Board of Executive Directors of BASF, said at the annual conference in Ludwigshafen. 

In the same occasion Bock said that the company would continue to look for attractive M&A targets in oil and gas.

The Germany-based company is divesting a gas trading unit in the middle of 2014. 

Last November, BASF agreed with Gazprom an asset swap which will allow Wintershall to concentrate more on gas and oil production. Through the agreement, BASF aims at a further expansion of its production of oil and gas, while exiting the gas trading and storage business.