Lanxess Shares Plunge as Advent Backs Out of Envalior Stake Purchase

The shares of specialty chemicals group Lanxess came under pressure after its planned exit from a joint venture with private equity investor Advent fell through, at least for now. Advent has decided not to acquire Lanxess's remaining stake of nearly 41 percent in Envalior, as the Cologne-based company announced. This deal could have brought Lanxess around €1.2 billion, depending on Envalior's operating performance. The stock, listed on the MDax mid-cap index, temporarily dropped by more than ten percent to its lowest level since 2009. By late morning, it was trading at €14.80. Contrary to what was announced in September 2025, Advent does not wish to acquire the remaining Envalior stake at this time. The takeover was scheduled to be completed by April 1, but Advent had already reserved the right to withdraw if financing could not be secured. The investor has now invoked this clause, Lanxess explained. In 2027, Advent has the right to acquire the Lanxess shares; from April 2028, Lanxess can then sell its stake, in whole or in part, to the partner, who must then take at least 50 percent and can no longer cite lack of financing as a reason not to proceed. The joint venture was established three years ago. Lanxess merged its polymer business with the plastics division of Dutch company DSM. As part of this, Advent took a majority stake in Envalior. The chemicals sector is struggling with weakening demand. Lanxess has responded with measures including cost reductions. The Envalior stake had already caused issues for the group: due to unexpectedly weak demand, Lanxess had to write down its book value. Even without the proceeds from the Envalior stake sale in 2026, Lanxess remains solidly financed in the long term, the company emphasized. The repayment of the bond maturing in October 2026 is secured. (Report by Tom Käckenhoff, edited by Alexander Hübner. For questions, please contact our editorial team at [e-mail] (for politics and economics) or [e-mail] (for companies and markets).)