BASF’s improved second offer stood at EUR 24 per share, representing a premium of approximately 39 % over the unaffected closing share price and valuing Evonik at around EUR 11.2 billion in total. BASF stated it found the rejection “incomprehensible” given the terms of the offer, which it said also included extensive commitments to employees and locations.
Evonik Leaves Door Open for Informal Exchange
Despite declining to enter negotiations, Evonik’s board declared its readiness for what it described as “a purely informational and confidential exchange” with BASF. The stated purpose would be to allow Evonik to explain its own position and to give BASF the opportunity to set out its motives and the considerations it regards as material.
BASF Chief Executive Markus Kamieth had reaffirmed his interest in Evonik earlier in the week during the presentation of the company’s latest quarterly figures. He described a potential merger as “strategically obvious” and noted that consolidation within the European chemicals industry was already underway, with BASF in a position to play an active role. However, Kamieth also made clear that an acquisition was not a prerequisite for BASF’s strategy and that the company would not pay an excessive price. The transaction would only be pursued if it offered economic benefit to shareholders.
Political and Shareholder Resistance
The rejection was welcomed by Mona Neubaur, the state economy minister of North Rhine-Westphalia, who stated: “Evonik is a strong, future-capable company and an important part of the industrial base of NRW – and that should remain so. We reject a takeover.” She emphasised that jobs and independent development must not be called into question, including in production, research, and administration.
A significant factor in any potential takeover scenario is the RAG Foundation, which holds approximately 43 % of Evonik’s shares. The foundation uses income from this and other holdings to finance the long-term costs associated with legacy mining operations in Germany.