According to Bloomberg, BASF has hired Morgan Stanley to help it evaluate and explore various options for its internal combustion engine catalyst business, including the possibility of a sale.

At the end of July, BASF completed the spin-off of its vehicle emissions catalysts and related precious metals services business and named the separate entity BASF Environmental Catalysts and Metal Solutions (ECMS). According to people familiar with the matter, the sale values the ECMS business at about 3 billion euros ($3.3 billion).

Discussions about the sale of ECMS are still ongoing, the structure of the sale is still possible, and it is uncertain whether a deal will eventually be reached, people familiar with the matter said. Because confidential information is involved, the person familiar with the matter requested anonymity. A spokesman for BASF declined to comment, and a JPMorgan spokesperson did not immediately comment.

On the news, BASF's share price rose 2.5% on August 22, valuing the company at about 41.2 billion euros.

But in recent years, the market for traditional automotive catalysts has changed dramatically, and electric vehicles are no longer as dependent on catalysts as traditional fuel vehicles, which may be one of the reasons why BASF is looking to sell the business.