Evonik’s Ashland Takeover Prospects Fade as Financial Investors Eye U.S. Company
Key Facts
Evonik’s prospects of acquiring U.S. rival Ashland have faded as other financial investors enter the picture, according to a Reuters report carried by Invezz. The report points to potential competition for the company, but does not establish that Evonik has ended its interest or withdrawn from pursuing a deal. A source familiar with the matter told the report that Evonik does not want to acquire Ashland at any price. The source said the company would not pay "fantasy prices," indicating that price would be a decisive factor in its decision. The report did not include a potential offer price or details of ongoing negotiations between the two companies.
Evonik had been considering an acquisition of Ashland for some time, according to a media report cited by Reuters in October. The report said the German company was studying its U.S. rival, without announcing a deal or a commitment to make an offer. Ashland, meanwhile, had been looking for a buyer after receiving takeover interest, according to Bloomberg Law. The company worked with Citigroup and Lazard as it engaged with strategic buyers and financial investors. This places financial investors’ interest in the context of a broader sale process, while available sources have not announced an outcome.
The discussion around Ashland comes as Evonik focuses on developing its business as an independent company. On October 30, the company announced it would not enter takeover talks with BASF, while leaving the door open to exchanging confidential information. The board said it was "focused on Evonik’s strategic direction and its continued development as an independent company." The stance provides context for the company’s deal strategy, but does not establish that its refusal to negotiate with BASF is why the chances of an Ashland deal have faded. Nor does it clarify whether Evonik’s interest in Ashland changed after it announced its position on BASF.
Ashland shares closed at $76.28 in the November 5 session, according to EL7 data. This price sets the closing level in the session before the story’s date and does not by itself show investors’ reaction to the report that takeover prospects had faded. The available evidence did not include the session’s high or low, or a comparison with the previous session’s close. It also contained no data establishing that a takeover premium supported the company’s valuation or determining the report’s effect on the stock. The closing figure therefore remains an indicator of the price recorded on that date, without attributing a specific move to the deal news.
Ashland reported fourth-quarter fiscal 2026 sales of $498 million, up 4% from the same period a year earlier. Adjusted EBITDA rose to $121 million, up 2% year over year. Chief Executive Guillermo Novo said the company’s performance "improved as the year progressed," attributing it to a strong strategy and the commitment of its teams. He added that international markets remained challenging. The results provide background on Ashland’s operating performance for the quarter, without linking them to interest from Evonik or any other buyer.
For fiscal 2027, Ashland forecast sales of between $1.905 billion and $1.975 billion, and adjusted EBITDA of between $405 million and $435 million. These ranges represent the company’s guidance for the coming period, while the available evidence gives no date for a decision on a sale or specific developments in takeover talks. At Evonik, adjusted EBITDA rose 40% to €629 million in the third quarter of 2026. The company said it expected full-year results in the upper half of its guidance range of €2.0 billion to €2.2 billion. These forecasts provide background on the two companies’ performance, while Evonik’s position on Ashland remains tied to Reuters’ report of fading prospects and its refusal to pay an inflated price.