THE WHAT? The German state of North Rhine-Westphalia has said that jobs and Evonik’s independent development must be protected following BASF’s approach over a potential takeover of the speciality chemicals group.
THE DETAILS Evonik rejected a €10.3 billion (US$11.55 billion) takeover proposal from BASF as too low, according to sources cited by Reuters. North Rhine-Westphalia could play an important role in any potential transaction because State Premier Hendrik Wüst sits on the board of trustees of the RAG Foundation, Evonik’s largest shareholder, whose approval would be required for any sale of its shares. The state government described Evonik as an important part of its industrial base with deep roots in the Ruhr region.
THE WHY? The intervention adds a political and shareholder consideration to any potential combination of two major European chemicals groups, with employment, manufacturing capacity and Evonik’s independence likely to become important factors alongside valuation in any further takeover discussions.
Source: Reuters
