BASF’s €11.18 Billion Offer Fails to Bring Evonik to Takeover Talks
Key Facts
On October 30, Evonik declined to begin formal negotiations over BASF’s improved takeover offer, saying it was not enough to open deal talks. Reuters valued the offer at about €11.18 billion, or €24 per share, after BASF improved it the previous week. Evonik asked BASF to clarify the rationale for the offer, while indicating it was willing to exchange views. Its executive board said it remained focused on “its strategic direction and continuing to develop Evonik as an independent company.” The decision puts the offer’s current terms at the center of the matter while leaving room to discuss its rationale.
The improved offer represents an increase from an earlier bid of €22.15 per share, which Evonik rejected in September. In a statement carried by Reuters, BASF said it took note of Evonik’s willingness to participate in discussions, despite being surprised that the company was unwilling to consider the offer. This means Evonik’s position concerns starting formal deal negotiations on the terms proposed, not refusing to exchange views. BASF and Evonik confirmed in September that they had held exploratory talks about a potential takeover, and BASF said at the time that the process and its outcome remained open. According to Evonik’s stated position, the higher price did not change its condition that BASF explain the rationale for the offer before formal negotiations begin.
BASF Chief Executive Markus Kamieth tied any further move to the criterion of returns for shareholders, saying: “We will only pursue a potential transaction if it adds value for our shareholders.” The statement places shareholder value creation among the conditions BASF says will guide its consideration of the deal. Evonik’s board, meanwhile, focused on the company’s independence and strategic direction, and asked BASF to explain the rationale for its offer. These stated positions provide a framework for potential discussions, without announcing an agreement to begin formal negotiations. BASF also said it would honor Evonik’s existing agreements to protect jobs in the event of a takeover, according to Reuters.
The safeguards BASF is willing to retain, according to sources cited by Reuters, include excluding compulsory redundancies for operational reasons in Germany until 2032. The sources also said any job cuts would be voluntary and accompanied by compensation. These commitments matter in a potential deal because the offer’s terms include arrangements for employees as well as the price. RAG Foundation, Evonik’s largest shareholder, has said a sale of its entire stake would be possible with the approval of its board of trustees. That makes the foundation’s position an important factor in any deal, Reuters reported.
The offer discussions come as BASF reported sales growth in the third quarter of 2026, with sales rising 14% to €16.4 billion, compared with €14.3 billion in the same period of 2025. The company attributed the increase mainly to a 12% rise in prices and a 2% increase in volumes year on year. Prices rose in the Chemicals, Materials, Surface Technologies and Industrial Solutions segments, according to its statement. Volumes also increased significantly in Chemicals and Nutrition & Care, while declining sharply in Agricultural Solutions. BASF added that a positive currency effect across all segments, particularly from the dollar and Chinese yuan, contributed to sales growth.
Sales growth did not prevent a decline in BASF’s earnings before interest and taxes: the company posted an operating loss of €98 million in the third quarter of 2026, compared with a profit of €232 million in the same period of 2025. At the same time, the company widened its 2026 forecast range for earnings before special items to €7.4–7.8 billion, from its previous range of €6.9–7.7 billion. In the market, BASF and Evonik shares closed down more than 1% at 10:14 GMT on October 28, according to Reuters. Evonik had raised its 2026 adjusted earnings before interest, taxes, depreciation and amortization forecast in August to €2.0–2.2 billion. That followed a result of €630 million in the second quarter, up 24% year on year, while its management said the improvement in that quarter did not change the underlying challenges facing the sector.