BASF has confirmed that it is conducting exploratory discussions with RAG-Stiftung and Evonik regarding a potential acquisition of Evonik. The move would represent the largest possible merger in the German chemicals industry.
BASF, the world’s largest chemicals company by revenue, has confirmed that it is in exploratory talks with RAG-Stiftung and Evonik Industries regarding a possible takeover of Evonik. Both companies confirmed contact had been made, with BASF stating that the outcome and progress of the discussions remain open. According to reports by the Financial Times, BASF has been exploring a deal with advisers for several months and has also held discussions with RAG-Stiftung in its capacity as a major Evonik shareholder.
Evonik confirmed that BASF had approached it with a non-binding expression of interest directed at a voluntary public takeover offer for all shares of the company. The German news agency Tagesschau reported that no formal negotiations are currently taking place. BASF stated that it continuously reviews strategic acquisition options as part of its corporate strategy, focusing on targets that strengthen its core businesses, offer a high strategic fit, and support profitable growth and value creation.
RAG-Stiftung’s central role in a potential deal
RAG-Stiftung holds approximately 43 % of Evonik’s shares and has previously indicated its intention to reduce this stake to 25.1 % over time. The foundation would play a key role in any potential transaction. According to the Financial Times, BASF’s interest in the acquisition is partly driven by its ambition to expand its regional footprint and product portfolio, including in the context of increasing competition from Chinese suppliers.
The news of the potential acquisition has already had a visible impact on financial markets. Evonik’s share price rose by more than 9 %, while BASF’s shares declined by approximately 2 %. BASF indicated it would inform the market without delay in accordance with regulatory requirements should further disclosure become necessary.
Source: European Coatings