European Chemicals Weekend Chemical Reactions

Research evidence excerpt

European Chemicals Weekend Chemical Reactions

Chetan Udeshi, CFA AC Europe Equity Research

(44-20) 7742-7034 24 May 2026 J P M O R G A N

chetan.x.udeshi@jpmorgan.com

ag, personal care, and construction end markets) to be the most likely candidate for

divestment, and were surprised by the inclusion of the higher-quality Technology

Solutions business (mining additives) within the review perimeter. Overall, feedback

was that the review is strategically sensible, with the magnitude and structure of

valuation crystallization the key open question.

• We view this as a logical step in Syensqo’s transition toward a more focused specialty

materials profile (specialty polymers and composites), which are relatively better

businesses and typically command higher multiples. More broadly, we continue to

argue that consolidation outside China appears increasingly necessary to build scale,

improve pricing power/synergies, and remain competitive against rising Chinese/

Asian competition, while also improving investor relevance.

• In our Syensqo SOTP valuation of €76/sh, we value the Performance & Care division

at ~7x 2027E EBITDA (c. €344m; ~17% margin), implying ~€2.4bn EV. There may

be upside to this multiple in a sale process, noting the company achieved a ~7x

EBITDA multiple for the recently divested (lower-quality) oil additives business.

Closest European reference points include Clariant, BASF, and Croda. Croda appears

less likely to be interested given stated M&A priorities, while Clariant and BASF

could have strategic rationale, albeit with Clariant’s financing capacity a potential

constraint.

• K+S: We’ve had incoming this week around the ongoing news flow that the US continues

to insist on the resumption of Belarusian potash transit via Lithuania, this time requesting