Evonik rejects BASF's improved takeover approach and refuses formal negotiations
The Essen-based specialty chemicals group said on Friday that it would not enter negotiations after reviewing a BASF letter dated 22 October. It offered only a purely informational exchange, and BASF said it was surprised.
Evonik Industries, the specialty chemicals group based in Essen, has decided not to enter into negotiations with BASF about a possible takeover. In an ad hoc statement published at 08:50 CET on Friday 30 October, the Executive Board said it had reviewed a letter from BASF dated 22 October 2026 expressing interest in making a voluntary public takeover offer, and that it remains focused on developing Evonik as an independent company.
According to Reuters, BASF's improved approach was worth €24 per share, or about €11.18 billion, up from an original €22.15 per share that Evonik had rejected in September. Evonik left one door open: it said it was willing to hold a purely informational and confidential exchange with BASF.
What Evonik said
The statement is short. Based on the information available, the board decided not to negotiate. At the same time it said it was willing to explain its position to BASF in a confidential exchange and to give BASF the opportunity to outline its rationale and the key considerations behind its interest. Evonik published the decision as inside information under Article 17 of the EU Market Abuse Regulation, via EQS News.
BASF responded the same morning. Reuters reported that the Ludwigshafen-based group expressed surprise that Evonik was not prepared to consider its "attractive offer" and the "extensive commitments made regarding employees and sites". BASF added: "However, we acknowledge Evonik's willingness to engage in discussions."
How the approach developed
In September Evonik rejected a first approach of about €22.15 per share, worth about €10.3 billion, as too low, according to sources cited by Reuters. On 23 October Reuters reported, citing two people close to the deal, that BASF had raised the offer to €24 per share. Bloomberg News had first reported the higher offer. Evonik and its largest shareholder, the RAG Foundation, declined to comment at the time.
The RAG Foundation's role is central. The foundation funds the perpetual obligations of German hard coal mining, such as pumping water out of old shafts in the Ruhr region. In a video statement on its Evonik information page, BASF chief executive Markus Kamieth said the foundation had already announced its intention to reduce its stake in Evonik, and argued that a deal would help it fulfil its purpose.
BASF's commitments
Kamieth's statement sets out three promises. BASF would take over the existing site agreements, which means compulsory redundancies would remain ruled out until 2032, and collective bargaining agreements would stay untouched. Essen and North Rhine-Westphalia would remain important locations, with at least one BASF board member based there. And while Evonik plans to sell its chemical park operator Syneqt, a sale BASF says would affect about 3,500 jobs, BASF said it could continue to run the parks in Marl and Wesseling itself.
Kamieth framed the deal as industrial policy. "A combination of BASF and Evonik would be a strong German response to global competition," he said, pointing to stronger competitors from Asia and the Middle East. He also said BASF would "not pursue a merger at any price". BASF argues that Evonik currently has to buy certain feedstocks that could come more cheaply and reliably from BASF's integrated Verbund production network.
Where things stand
There is no formal offer. BASF's own page notes that the terms of any public offer would be set out only in a formal offer document. Evonik has now turned down negotiations twice. Its shares closed at €21.26 on 23 October, the day the higher offer was reported, according to Reuters, below the €24 per share BASF is reported to have put forward. BASF has also warned that more painful takeover approaches from abroad were looming, and the state of North Rhine-Westphalia has said jobs at Evonik and its independent development must not be jeopardised by a takeover.
Evonik's management situation adds a further layer. Chief executive Christian Kullmann has been on medical leave since August, Reuters noted. He had previously said the chemicals industry would consolidate and that Evonik wanted to play an active role in that process.
What it means for founders and investors
Europe's chemicals sector is under pressure from high energy costs and strong competition from Asia and the Middle East, and both companies say consolidation is coming. The question in Essen is who leads it. For founders in materials, specialty chemicals and industrial deep tech, a prolonged standoff matters. Large groups in the middle of defence or takeover battles tend to slow down partnerships, pilots and corporate venture decisions while strategy is unclear.
The case also shows how much weight anchor shareholders carry in European takeovers. With a foundation as the largest shareholder and an obligation to fund mining legacy costs for decades, the outcome will depend less on market pressure and more on what the RAG Foundation decides is best for its long-term purpose. Investors in German industrial companies with foundation or family anchors will recognise the pattern.
Finally, BASF's job guarantees until 2032 set a marker. Any bidder for a German industrial group with strong co-determination now faces expectations of site and employment commitments from the start. The next step is the confidential exchange Evonik has offered. Whether BASF goes direct to shareholders with a formal offer is not known.
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