BASF Pledges Job Protections to Advance Potential Evonik Takeover

2026-10-12 companies

Ludwigshafen, Monday, 12 October 2026.
To overcome political opposition and advance takeover discussions, chemical giant BASF pledged to protect Evonik’s German production sites and honor existing employment guarantees lasting through 2032.

Valuation Disputes and Offer Details

Prior to the recent commitments, Evonik Industries AG rejected BASF SE’s initial non-binding takeover approach valued at approximately €10.3 billion, equivalent to €22.15 per share [2][5]. Sources close to the negotiations indicated that the specialty chemicals maker deemed the bid too low, prompting speculation that BASF could raise its offer if formal talks commence [5][6]. As of October 9, 2026, no revised proposal had been submitted, though market analysts suggested a deal valuation exceeding €15 billion might be necessary to secure approval [2][6]. BASF management is currently evaluating an upward revision of their initial bid, with a revised offer expected to be finalized by October 15, 2026 [2].

Political and Labor Landscape

The potential acquisition faces scrutiny from political and labor representatives in North Rhine-Westphalia, where Evonik is based [3][7]. The state parliament is scheduled to debate the issue on Wednesday, October 14, 2026, following a motion titled “The Ruhr region must not pay the price, secure Evonik’s independence and jobs” [4]. The RAG Foundation, which holds a 43% stake in Evonik and must approve any sale of its shares, has been briefed on BASF’s interest [4][5]. Trade union IG BCE has called for future prospects for Evonik employees and investment commitments for the sites, emphasizing that jobs must not be jeopardized by the takeover [3][7].

Strategic Context and Market Pressures

BASF initiated exploratory takeover negotiations with Evonik prior to October 8, 2026, seeking to consolidate its position in the specialty chemicals sector to offset fluctuating raw material costs [2][5]. The European chemical sector faces mounting consolidation pressures due to high energy costs and slowing global demand [1]. BASF, currently the world’s leading chemical company, risks losing its top global ranking by chemicals revenue to China’s Sinopec, whose chemicals division revenue was broadly neck and neck with BASF’s group revenue of €59.7 billion last year [5]. BASF confirmed exploratory discussions regarding a potential takeover with RAG-Stiftung and Evonik in a September 2026 statement, emphasizing a focus on strategic fit and value creation [2][4].

Sources

BASF Chemical Industry