BASF Reportedly Raises Evonik Offer Above €11 Billion

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BASF has increased its takeover offer for Evonik Industries to €24 per share, according to an October 23 Reuters report citing two people close to the matter. The proposed price would value Evonik at approximately €11.18 billion.

The reported increase follows an earlier proposal of around €22.15 per share. Reuters previously reported that Evonik rejected the approximately €10.3 billion approach as too low. Evonik and its largest shareholder, the RAG Foundation, declined to comment on the latest report.

BASF Outlines Conditional Employment Commitments

The reported price change came a day after BASF CEO Markus Kamieth publicly described commitments the company would make in the event of an acquisition.

In an October 22 statement published by BASF, Kamieth said the company would honor Evonik’s existing site agreements, including protections against compulsory redundancies through 2032, as well as collective bargaining and training commitments.

He also described plans to retain a significant presence in Essen and North Rhine-Westphalia, including board-level representation and corporate functions, and strengthen research and development. BASF said it would examine continued operation of the Marl and Wesseling chemical parks. These statements describe conditional intentions rather than a completed integration plan.

Separate Acquisition Interest Reported

Evonik’s interest in acquiring Ashland began before BASF’s takeover approach, Reuters reported October 23, citing two people familiar with the matter. Reuters also reported, citing a source close to the matter, that BASF considered a potential Evonik acquisition of Ashland too risky. The reporting does not establish an agreed transaction between Evonik and Ashland.

As of October 23, the higher BASF price remained a reported proposal, not a jointly announced agreement. It represents a new development in the potential transaction previously covered by PCI.

A potential combination would be significant for coatings manufacturers following ownership and strategy among suppliers of paint and coatings additives and other formulation raw materials. The reported offer does not, by itself, establish changes to product availability or customer supply arrangements.