Chemical giant BASF has left the door open for a possible acquisition of Essen-based specialty chemicals company Evonik. Insiders suggest that BASF may revise its initial offer of EUR 22.15 per share, which Evonik rejected at the end of September. The current proposal values Evonik, including debt, at approximately EUR 14 billion. The RAG Foundation, which holds around 43 % of Evonik’s shares, has stated that it is open to selling its stake in principle to fulfil its commitments related to Germany’s coal mining legacy.
The potential acquisition has both economic and political dimensions. BASF is reportedly considering guarantees to preserve jobs and sites, a move that could secure approval from the RAG Foundation and political stakeholders. These commitments are seen as critical for the deal’s success.
RAG Foundation at the centre of negotiations
The RAG Foundation plays a pivotal role in the acquisition process. As Evonik’s largest shareholder, it manages assets to fund the long-term costs of Germany’s phased-out coal mining industry. While the foundation has confirmed being approached by BASF, it remains unclear if an improved offer would lead to a sale.
BASF, which has so far refrained from publicly commenting on the acquisition plans, appears focused on achieving long-term synergies and strengthening its position in the specialty chemicals market. Ongoing economic and political developments, particularly those concerning job protection and regional industrial growth, are likely to influence the outcome of negotiations.
Source: European Coatings