Global chemical company BASF has announced the sale of its stakes in its joint ventures located in Korla, Xinjiang Uygur Autonomous Region, China – BASF Markor Chemical Manufacturing (Xinjiang) Co., Ltd. and Markor Meiou Chemical (Xinjiang) Co., Ltd. – to Verde Chemical Singapore Pte. Ltd. (hereinafter referred to as Verde Chemical), a company based in Singapore. Following approval from relevant authorities, the transaction was completed on April 21, 2025. Both parties have agreed not to disclose the specific financial terms of the transaction.   

Verde Chemical is a company registered in Singapore, with Verde Ventures SGP, also a Singaporean company, being its majority shareholder. Verde Chemical is currently establishing an intellectual property and licensing center in Singapore to promote the commercialization of advanced technologies and plans to support its Southeast Asian manufacturing sector with the backing of its minority shareholder, GSS Energy Limited.   

This decision by BASF is analyzed to be in line with the recent trend of business restructuring in the global chemical industry. BASF has been focusing on its core businesses and streamlining business units with low profitability or strategic importance. The geographical characteristics of the Xinjiang region and complex international situations are also believed to have influenced this decision to sell the stakes.   

The two joint ventures subject to the sale are known to have primarily produced methanol derivatives. BASF continues its active business operations in other regions of China, and this sale is limited to the joint ventures within a specific region. BASF is expected to further concentrate on innovative chemical solutions and sustainable product development in the Chinese market in the future.

Meanwhile, Verde Chemical is expected to secure a production base in China through this acquisition and plans to expand its business to the Southeast Asian market based on the technologies acquired through its intellectual property center. In particular, attention is focused on whether it can create synergy effects in the energy and chemical sectors through cooperation with its minority shareholder, GSS Energy Limited. GSS Energy Limited is a company investing in oil and gas exploration and production, as well as renewable energy, and is expected to play a significant role in Verde Chemical's manufacturing business expansion.

Through this transaction, BASF is expected to reorganize its business portfolio, and Verde Chemical is expected to secure new growth momentum. Amidst intensifying competition in the global chemical industry, the strategic moves of each company are drawing attention as to how they will impact the future market landscape.

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