Evonik’s Interest in Ashland Remains Unresolved as BASF Bid Pressure Continues
Key Facts
Evonik has not officially announced that it is withdrawing its interest in acquiring Ashland, while a November 6 report said the deal’s prospects had diminished amid interest in the U.S. company from financial investors. Reuters reported on October 22 that Evonik was considering buying a U.S. competitor and named Ashland, but the consideration was at an early stage. The company said at the time that it did not comment on market rumors, according to a Handelsblatt report. That leaves the possibility of a deal open, with nothing to establish that it has ended or that a formal offer exists. Against this backdrop, Evonik is facing a takeover offer from BASF and deliberations over its position on the bid.
Reuters said on November 9 that Evonik was still rejecting BASF’s offer after a management meeting held over the weekend. No further meetings had been scheduled at that time, according to a person familiar with the matter cited by Reuters. Handelsblatt reported that officials from both companies left the meeting without a plan for substantive negotiations, while Evonik’s board continued to reject the offer. These accounts indicate that the weekend meeting did not lead to a clear move toward negotiations. The source cited by Reuters said: "No further meetings are currently scheduled."
BASF improved its offer in October to 11.18 billion euros, or 24 euros per share, according to Reuters. Evonik had previously rejected an initial BASF offer of 22.15 euros per share in September. The improved offer puts BASF’s pursuit of Evonik at the center of the German company’s current situation, alongside its potential interest in Ashland. But the weekend meeting produced no plan for substantive negotiations, and Reuters did not specify a date for another meeting. Evonik’s position on the BASF offer therefore remained a live issue, while the Ashland process remained at the early consideration stage.
In the Ashland process, Handelsblatt reported that financial investors, including Advent, Apollo and Carlyle, were interested in the company alongside strategic buyers. Reuters reported in June that activist investor Ancora had urged Ashland to sell itself, arguing that a deal could lift the share price by at least 30%. Ancora presented that as a potential estimate in a proposal reviewed by Reuters, not a guaranteed outcome. Ashland said on June 10 that it was focused on executing its growth strategy, improving operating performance and generating cash, and that its board continually reviews the strategy and opportunities to create value. The reduced prospects of a potential buyer, alongside interest from other parties, mean the ownership outlook remains unresolved.
Ashland’s businesses include high-performance materials, feed additives, coatings ingredients and household products, according to an October Reuters report. BASF’s products include engineering plastics, superabsorbent polymers, vitamins and chemicals for industrial use. The difference between these product portfolios provides industrial context for Evonik’s potential interest in Ashland, but does not establish that the company made an offer or entered negotiations with it. Ashland announced its fiscal 2026 results on November 3 and issued its outlook for fiscal 2027. The financial update comes as different parties consider their options for the company.
Ashland shares closed at $76.62 on November 6, according to EL7 data. The data provided do not include the stock’s trading range for the session, nor do they link the closing price to confirmation of a withdrawal by Evonik. In the BASF matter, the RAG Foundation owns about 44% of Evonik’s shares, according to Handelsblatt. The foundation’s board of trustees is scheduled to hold its next regular meeting on November 25, which could be a later milestone in the BASF offer process. Until then, no further meetings between BASF and Evonik had been scheduled, according to Reuters on November 9.