THE WHAT? BASF has reportedly increased its takeover offer for German speciality chemicals manufacturer Evonik Industries to more than €11 billion, as consolidation pressures intensify across Europe’s chemicals sector.
THE DETAILS The revised proposal values Evonik at approximately €24 per share, up from an earlier offer worth around €10.3 billion, representing a premium of approximately 38% to its share price before takeover speculation emerged in September. BASF has reportedly offered guarantees covering employment and production facilities, including commitments to honour existing job protections through 2032. Evonik’s largest shareholder, RAG-Stiftung, is expected to play a central role in any potential agreement. Both companies have declined to comment, and discussions remain ongoing, with no transaction confirmed.
THE WHY? A potential combination would bring together two major suppliers of speciality chemicals and ingredients used across the cosmetics and personal care industry, including functional additives and performance materials. The reported negotiations reflect mounting pressure on European chemical manufacturers to improve competitiveness, consolidate production capacity and respond to weak demand, high operating costs and growing competition from Asia.
Source: Bloomberg
