BASF Could Raise Evonik Offer if Talks Begin, Reuters Reports
BASF could increase its reported offer for Evonik Industries AG if the companies enter negotiations, according to an Oct. 9 Reuters report republished by MarketScreener, which cited two people close to BASF. Evonik reiterated that no talks were currently underway, and BASF declined to comment.
BASF could raise its reported offer for Evonik Industries AG if the companies enter negotiations, according to Reuters, citing two people close to BASF.
The report follows an earlier approach valued at approximately €10.3 billion, or €22.15 per Evonik share, which people familiar with the matter said Evonik rejected as too low. The Oct. 9 report does not identify a revised price, timetable or formal proposal.
Evonik reiterated that no talks are currently underway, while a BASF spokesperson declined to comment on the new report. A spokesperson for RAG Foundation, Evonik’s largest shareholder, said the foundation’s board of trustees had been briefed by its executive board on BASF’s interest but provided no additional details.
Reuters also reported that BASF is considering possible commitments to Evonik employees. The German state of North Rhine-Westphalia, where Evonik is based, has said that employment and the company’s independent development should not be put at risk. The state’s premier serves on the RAG Foundation board of trustees, whose approval would be required for a sale of the foundation’s shares.
In its most recent first-party statement, BASF confirmed exploratory discussions with RAG-Stiftung and Evonik regarding a possible takeover. BASF said the course and outcome of those discussions remained open and described its acquisition approach as focused on strategic fit, profitable growth and value creation. BASF
PCI previously reported that Evonik rejected the €10.3 billion approach, after BASF confirmed exploratory discussions. The developing takeover interest comes as Evonik continues a broader restructuring that includes plans to close two German production sites.
The latest reporting indicates that BASF may have room to revise its position, but it does not establish that a higher offer has been submitted, that formal negotiations have begun or that a transaction has been agreed.
BASF and Evonik are major suppliers of additives, resins, intermediates and specialty chemistry used across coatings and CASE markets. A combination could affect product portfolios, production networks, technical support and competitive conditions for coatings manufacturers worldwide.
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