BASF Offers Job Guarantees Through 2032 as Evonik Takeover Path Remains Open
Key Facts
BASF has offered job and site guarantees in Germany as part of its vision for a potential takeover of Evonik, with CEO Markus Kamieth saying operationally driven redundancies would remain ruled out until 2032 under existing site agreements. He added that collective wage agreements and social partnership would remain untouched if the companies were combined. BASF confirmed on September 25 that it had held exploratory talks with Evonik and the RAG Foundation about a potential takeover, saying the process and its outcome remained open. No definitive agreement has emerged, while Evonik said takeover talks are not currently under way. The proposed commitments put jobs and sites at the center of any future negotiations.
The guarantees concern a region where Evonik has industrial sites and local jobs. Kamieth said Essen and the state of North Rhine-Westphalia would remain important locations for the group if the companies were combined. He added that at least one member of the executive board would work in the region, alongside business-unit leaders and central functions. BASF said it was open to continuing to operate the Marl and Wesseling chemical complexes. It linked this to Evonik's plan to sell the operator of the complexes, Syneqt, saying the planned sale could affect around 3,500 jobs in North Rhine-Westphalia. The commitment places continued operation of the complexes within BASF's plan to protect its industrial presence in the region, alongside job guarantees.
As for the earlier takeover offer, people familiar with the matter cited by Reuters said Evonik rejected a 10.3 billion euro offer from BASF, equivalent to 11.70 billion dollars, or about 22.15 euros per share, as too low. Reuters reported these details based on sources close to the negotiations, and neither company has officially confirmed them. BASF said its valuation was based on potential savings that could be verified only with Evonik's participation, while Evonik and the RAG Foundation declined to comment on the offer, according to Reuters. On September 28, Evonik shares closed at 19.84 euros, up 2.4% in the session, after closing at 18.07 euros on September 24, before news of BASF's interest emerged. The share move therefore came after the news spread, while details of the offer and the parties' positions on it remained tied to Reuters sources and the companies' limited comments.
BASF's industrial case rests on potential synergies between the companies' production, procurement, infrastructure and research networks. Kamieth said BASF's integrated production network could allow it to supply some of the raw materials Evonik buys at lower cost, more directly and more reliably. He described the supplies as "less costly, more direct and reliable" if they came from within the group. He also pointed to potential advantages in procurement, infrastructure and research, without providing a numerical estimate of savings. These benefits remain part of BASF's rationale for the deal, as it said verifying them would require Evonik's participation.
The comments come as Evonik's operating results have recently improved. Adjusted earnings before interest, taxes, depreciation and amortization rose 24% to 630 million euros in the second quarter of 2026, and the company raised its full-year forecast to a range of 2.0 billion to 2.2 billion euros, from 1.7 billion to 2.0 billion euros previously. Evonik attributed the improvement to higher volumes and selling prices amid supply-chain bottlenecks outside Europe, saying the disruptions had particularly affected Asian competitors. The company linked those bottlenecks to the ongoing conflict in the Middle East, saying they were concentrated mainly outside Europe and contributed to stronger earnings. The results provide financial context for discussions over the company's valuation, as BASF says the value of its offer depends on potential savings that have yet to be realized.
BASF's proposed guarantees face Evonik's announced restructuring program. The company said the program would cut around 2,800 jobs between 2024 and 2026, with a further reduction of around 3,200 jobs during 2027–2029. In the market, BASF's American depositary receipt closed at 14.76 dollars on October 22, compared with a close of 14.80 dollars the previous day. BASF is scheduled to make written information on its third-quarter results available on October 28, 2026, at 7:00 a.m. Central European Time. The date follows its comments on Evonik, while the course and outcome of the talks remain open.