Published by Global Banking & Finance Review®
Posted on March 6, 2026
2 min readLast updated: April 1, 2026
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Lanxess shares fell sharply—over 14% on March 6, 2026—to a 17‑year low after Advent HoldCo invoked a financing clause and declined to proceed with the planned 2026 acquisition of Lanxess’s ~41% stake in the Envalior joint venture.
LONDON/MUNICH March 6 (Reuters) - Lanxess shares were set for their worst day ever after the German specialty chemicals maker said the sale of its stake in plastics joint venture Envalior had been called off, one of the first deals dropped since the start on the air war in Iran.
An investment vehicle backed by European buyout group Advent decided against buying the stake of just under 41%, Lanxess said late on Thursday.
The deal would have meant a payout of some 1.2 billion euros ($1.39 billion) for Laxness.
Lanxess shares were down 20% as of 1354 GMT, on track for their worst day ever.
A person familiar with the situation said Advent had made the decision in light of a deterioration in the sector and more recently in part due to markets souring in the wake of the Iran conflict.
The German chemical sector, the country's third-largest, has struggled for years with an economic slowdown, high energy costs, and supply chain issues.
This week European chemicals shares fell after the U.S.-Iran conflict and the closure of the Strait of Hormuz roiled global markets and led to a surge in oil prices.
Even without the proceeds, Lanxess said it was solidly financed and the repayment of a bond due in October 2026 was already ensured.
Envalior was formed three years ago via a merger of Lanxess' plastic polymers business with the plastics division of Dutch firm DSM, after which Advent took a majority stake.
Advent has the right again to acquire the Lanxess shares again in 2027.
($1 = 0.8639 euros)
(Reporting by Alexander Huebner, Andres Gonzalez Estebaran ; writing by Bartosz Dabrowski; editing by Ludwig Burger, Anousha Sakoui and Jason Neely)
Lanxess shares fell to a 17-year low after Advent canceled its plan to fully acquire the Envalior joint venture, causing financial uncertainty.
The canceled deal would have entitled Lanxess to around 1.2 billion euros ($1.39 billion) in proceeds.
Advent invoked a contractual clause allowing withdrawal if certain financing conditions were not met.
The German chemical sector has struggled with economic slowdown, high energy costs, and supply chain issues.
Additional tender and purchase periods for Lanxess shares in the joint venture will apply in 2027 and 2028.
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