BASF approaches Evonik about takeover: Update

: Agriculture, Fertilizers, Petrochemicals
26/09/25

Adds BASF and Evonik confirmation of talks

German conglomerate BASF has made a takeover approach for compatriot chemicals producer Evonik, it said today.

It described the talks as exploratory and said the outcome "remains open".

Evonik confirmed the approach, and said no talks are taking place.

Foundation RAG-Stiftung, which holds around a 43pc stake in Evonik, earlier said it was contacted by BASF regarding a potential takeover.

No details of the potential acquisition were given. Evonik shares rose by more than 7pc today. It has a market capitalisation of around €8.4bn ($9.6bn).

Evonik is undertaking a restructure that will include the cutting of 3,200 jobs in the coming two years and the closure of its polyester business.

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26/09/25

Braskem restructuring faces court setback

Sao Paulo, 25 September (Argus) — A Sao Paulo court dealt a setback to petrochemical producer Braskem's debt overhaul, lifting creditor protections for two financing subsidiaries, blocking additional support for Mexican affiliate Braskem Idesa's Chapter 11 process and appointing a judicial administrator. In a 24 September ruling, the 2nd Bankruptcy and Judicial Reorganization Court of Sao Paulo rejected the debtors' attempt to calculate creditor support through substantive consolidation, requiring support levels to be assessed individually for each entity. The Brazilian court found that Braskem Netherlands and Braskem America Finance failed to meet the minimum one-third creditor support threshold required under Brazil's bankruptcy law. Creditor support reached 20.4pc for Braskem Netherlands and 13.2pc for Braskem America Finance, below the statutory 33.3pc requirement. As a result, the stay period was lifted for the two entities, and the debtors were ordered to demonstrate compliance within 15 days or propose alternative measures. The ruling also addressed Braskem's planned support for Braskem Idesa, which recently sought Chapter 11 protection in the US Bankruptcy Court for the Southern District of Texas. An ad hoc group of creditors argued that Braskem and affiliated entities have committed up to $800mn to the Mexican process, including a $415mn debtor-in-possession financing facility, a $71mn equity contribution and additional obligations tied to future ownership interests. The court granted a precautionary injunction preventing Braskem and the restructuring entities from making further extraordinary payments, transfers, financing disbursements or equity contributions linked to the Mexican process pending further review. The judge said the transactions could materially affect the financial position of the group's debt overhaul. The decision came one day after Shine I FIP launched a mandatory tender offer for minority shares of Braskem, one of the final regulatory steps following the fund's acquisition of control of the company. The offer does not affect control of Braskem but is intended to complete the ownership transition. Braskem must submit within 15 days a report detailing the structure, funding sources and expected impacts of the Braskem Idesa transaction. The court also requested information from controlling shareholders Petroleo Brasileiro (Petrobras) and Shine I Fundo de Investimento em Participacoes (Shine I FIP) regarding corporate approvals. Separately, the court appointed ACFB Administracao Judicial as judicial administrator, citing the complexity of a case involving six entities and roughly $10.9bn in liabilities. By Fred Fernandes Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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SAF needs nuanced crop feedstocks policy: Panel

26/09/25

News

26/09/25

SAF needs nuanced crop feedstocks policy: Panel

London, 25 September (Argus) — Fuel producers and crop suppliers increasingly support the careful use of intermediate crops for sustainable aviation fuel (SAF), aiming to ease feedstock shortage concerns, attendees heard at the SAF Global Summit in London this week. Policymakers are wary of increasing use of crops in biofuels because of food scarcity and previous deforestation scandals. But delegates said Europe urgently needs more feedstocks to curb costs, and that nuanced policy can address these concerns. Farmers grow intermediates crops between rotations to regenerate soil. German life sciences firm Bayer said they could grow oilseeds like camelina, winter canola or pennycress. Farmers already monitor vast field-level data that could enable certification, Bayer's biofuels lead Peter Muller said. Current policy oversimplifies the issue, favouring binary choices of "crop bad, used cooking oil (UCO) good, electricity good", said BP's vice president of regulatory affairs, bioenergy, Eirik Pitkethly. "There's a whole layer of nuance we need to get into," he said. Using a fraction of intermediate crops that EU farmers already grow and do not harvest could yield 2.5mn t of SAF, enough to meet the EU's 2030 SAF mandate, Pitkethly said. "The scale is massive," he said. "It's too good to ignore. But it's difficult and there are challenges in getting the rules right." Lax regulations in the early days of the biofuels industry led to "deforestation in carbon-sensitive environments" and created "more emissions than using fossil fuels," which still makes policymakers hesitant, Pitkethly said. Pragmatic policy would find a "sweet spot", avoiding overburdening farmers while setting enough protections, such as requiring multi-year data to prove no land use change. Policymakers could block carbon-sensitive geographies from supplying feedstock if necessary, he said. The EU appears closer than the UK to opening the door to intermediate crops, Pitkethly said. Cover crops are allowed under EU rules, but details are lacking on which crops qualify and what evidence producers must provide on sustainability. Pitkethly said none of the European Commission's several drafts have provided the clarity needed. Other panellists said companies should be allowed to grow crops for SAF in desert regions, where there would be no competition with food. Egypt could make SAF with its non-edible desert crop jojoba, said grower Saraya's chief operations officer, Middle East, Omar El Mougy. Keeping costs down Narrowing the feedstock pool for hydrotreated esters and fatty acids (HEFA), the most established and cheapest route for making SAF, forces aviation to rely on larger amounts of more expensive SAF types instead, Pitkethly said. Replacing fossil jet fuel with SAF may need in the region of 400mn t/yr of SAF, but using only waste oils may reach a ceiling of 40mn t/yr because of global constraints on the main UCO feedstock, he said. The shortfall could be filled with novel SAF types like alcohol-to-jet or synthetic SAF from electrolytic hydrogen and carbon (e-SAF). These are more costly than HEFA, and it would be far more economical to maximise the HEFA feedstock pool as far as possible first, Pitkethly said. By Aidan Lea Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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US warns vessels over Houthi Red Sea threat

26/09/25

News

26/09/25

US warns vessels over Houthi Red Sea threat

Singapore, 25 September (Argus) — The US Maritime Administration has urged US-flagged commercial vessels to switch off their Automatic Identification System (AIS) when transiting high-risk waters around the Red Sea and Gulf of Aden, as Houthi attacks on commercial shipping persist. The guidance, effective from 23 September, also advises vessels to vary routes and speeds, limit electronic transmissions and remain as far from Yemen's coastline as safely possible to make them harder to track and target. The guidance follows a resumption of attacks by Iran-backed Houthi militants on commercial shipping. Tankers Daisy , a coastal tanker and Amzan , a very large crude carrier (VLCC) were struck by Houthi missiles off Yanbu, Saudi Arabia, on 5 and 24 August, respectively. Yemen's Iran-backed Houthi militant group announced a ban on Saudi Arabian "maritime navigation" on 20 July, threatening the transit of Saudi-affiliated vessels through the Bab el-Mandeb strait. The group subsequently seized the Red Sea port city of Mocha on 11 September, enhancing the Houthi's ability to disrupt vessel traffic and provide Iran with an additional means of exerting pressure on international shipping. Vessels with links to Israel, the US, the UK or Saudi Arabia are considered to be at greater risk when transiting the southern Red Sea, Bab el-Mandeb and the Gulf of Aden, according to the advisory. The heightened threat also extends to vessels belonging to companies or fleets identified as having previously called at Saudi ports. Potential attacks could involve missiles, aerial or surface drones, small-arms fire, explosive boats, illegal boardings and vessel seizures, the US Maritime Administration cautioned. Attacks could also create navigation hazards for other commercial vessels operating nearby. The US advised its flagged vessels transiting the Red Sea, Bab el-Mandeb, Gulf of Aden, Arabian Sea and Somali Basin to switch off AIS unless masters consider doing so a risk to navigational safety. While ships have previously been attacked with AIS both on and off, disabling it can make vessels more difficult to track and accurately target, it said. Ships should also avoid repeating routes, waypoints and speeds used on previous voyages where possible, while minor changes in course and speed could also help to complicate targeting. Operators were warned that other electronic transmissions, including onboard commercial systems and Wi-Fi, could also reveal vessel information. Ships receiving instructions from the Houthis or entities claiming to represent Yemeni authorities to divert, activate AIS or provide voyage information should disregard them and continue their passage where safe, the advisory said. US-flagged vessels were also advised to coordinate voyage planning with US naval authorities and immediately report attacks, suspicious activity or other security incidents. Separately, vessel traffic through the strait of Hormuz held at 12 crossings on 23 September, unchanged from 22 September , Windward data show. About 10 vessels were inbound and two were outbound. Three inbound vessels used the southern US-assisted route and six took Iran's northern corridor, while both outbound vessels used the southern route. By Sean Lui, Sureka Elangovan and Jared Bateman Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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Mexico central bank holds rate, cites inflation risks

26/09/24

News

26/09/24

Mexico central bank holds rate, cites inflation risks

Mexico City, 24 September (Argus) — Mexico's central bank (Banxico) on Thursday held its target interest rate at 6.5pc, its lowest level in more than four years, and signaled support for keeping rates unchanged even while noting that the balance of inflation risks remained to the upside on war risks and US economic policy. The unanimous decision to hold rates unchanged was the third since Banxico cut rates to 6.5pc on 7 May. The bank reduced the benchmark rate 450 basis points over 18 half- and quarter- point rate cuts made from a cyclical high of 11.25pc in March 2024. Banxico, after the decision, said the balance of risks to inflation remains biased to the upside, and raised the conflict in the Middle East, adding, "economic policy by the US administration and a possible extension of geopolitical conflicts continue adding uncertainty to the forecasts." The bank added slack conditions are "expected to continue throughout the forecast horizon and downward risks to economic activity persist." The announced included a statement responding to the Federal Reserve's recent quarter-point rate hike on its benchmark to 3.75-4pc and market expectations another hike may be coming, stating, "Since macroeconomic conditions in Mexico are different from those in the United States, monetary policy should not have to react mechanically to the anticipated adjustments to the federal funds rate." The central bank made one noteworthy change in Thursday's rate announcement, changing the wording to say the board will "make its decisions considering the ongoing disinflation process and the expected behavior of its determinants" in place of "the governing board believes it will be appropriate to maintain the reference rate at its current level." Noting the shift in language, Juan Sebastián Restrepo of Mexican asset manager Skandia said, "While the scope for further cuts has narrowed in the current context, the statement does not suggest that Banxico is preparing for a rate-hiking cycle" Banxico noted headline inflation sped to 3.42pc in mid-September from 3.1pc mid-July, with stability in core inflation, which excludes volatile food and energy prices. The announcement also cited the potential for climate-related impacts with US weather agency NOAA latest forecast giving a 75pc probability that the El Nino climate event, peaking between October and December, would become the most intense since 1950. By James Young Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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European spot MEG prices lack momentum

26/09/24

News

26/09/24

European spot MEG prices lack momentum

Amsterdam, 24 September (Argus) — European monoethylene glycol (MEG) prices edged lower in September, despite global values rising because of geopolitical tensions in the Middle East. Increased domestic production, steady contractual imports and subdued demand has limited European price gains. Argus assessed bulk cargoes at €600-630/t cif ARA on 23 September, down by €15/t at the midpoint compared with 12 August. Truckload values were €690-720/t fca ARA, compared with €700-720/t as of 12 August. This contrasts with some market expectations of price increases, given tighter global supply and higher Asian prices. Spot prices for MEG in China, the world's largest import market, were $750-780/t cfr on 23 September, below last week's peak but around $115/t above levels of early August. Arbitrage for European spot imports from the US, the continent's largest MEG supplier, remained unworkable in September as US prices climbed. European cif values rose marginally on a sale for September delivery, before retreating. Yet, European imports are broadly steady, mostly arriving from the US and Saudi Arabia under long-term contracts. Higher operating rates at some domestic facilities since August ensured sufficient supply. Several European producers increased ethylene glycols output, responding to weak spot demand for upstream ethylene and relatively active demand for bulk MEG cargoes for August and September delivery. Some MEG consumers relied more heavily on spot purchases than in 2025, creating additional sales opportunities in the third quarter, particularly among antifreeze buyers securing supplies ahead of the winter. Some customers may favour European supply over imports to mitigate potential disruptions during the US hurricane season, although no significant weather-related disruptions have occurred this year. European producers remained competitive despite rising naphtha feedstock costs weighing on margins in September. It remains to be seen if margin pressure will prompt ethylene glycols output cuts. Regional ethylene glycols production is likely to drop in September-October because of planned maintenance at a northwest European producer, lasting six to eight weeks and potentially affecting availability into mid-November. The effect of the shutdown could be partially offset by scheduled turnarounds at downstream facilities, curbing demand for feedstock MEG in October-November. Lithuanian polyethylene terephthalate (PET) resin producer Neo Group will shut one of three production lines in Klaipeda, with combined capacity of around 500,000 t/yr, from late September for around two months. Indorama Ventures will shut its 230,000 t/yr PET resin facility in Wloclawek, Poland, in early November for one month. These outages are likely to take around 160,000 t/yr and 390,000 t/yr of PET capacity offline in October and November, implying lost MEG demand of 14,000-15,000t over two months at full capacity. The actual effect on feedstock demand is likely to be lower, as most PET plants in Europe are operating below nameplate capacity because of weak demand and ample supply. Demand from another key downstream sector, antifreeze and coolants, is healthy and broadly in line with expectations ahead of the peak fourth-quarter season. Some buyers may opt to stay out of the market in the coming weeks after securing early requirements, supporting August demand, during the usual seasonal lull. European spot prices must realign with global levels to continue attracting imports and support current domestic operating rates. But if regional demand remains subdued, price support is likely to be limited. By Liana Minihan MEG cif ARA T2 differential to MEG cfr China $/t Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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