Germany's Evonik Rejects BASF's Approximately €11.2 Billion Acquisition Proposal

en.Wedoany.com Reported - On October 30, German specialty chemicals group Evonik Industries decided not to enter into formal negotiations with BASF regarding a potential acquisition transaction. After reviewing the voluntary public acquisition proposal submitted by BASF on October 22, Evonik's board of directors chose to continue pursuing its independent development strategy. According to Reuters, BASF's latest offer is €24 per share, valuing Evonik's equity at approximately €11.18 billion.

This acquisition offer represents an increase over the preliminary proposal made in September. BASF's initial offer was approximately €22.15 per share, corresponding to an equity valuation of about €10.3 billion. At the time, Evonik deemed the offer insufficient to support formal negotiations and declined to proceed with due diligence. BASF subsequently raised its per-share offer by €1.85, an increase of approximately 8.4%, but the new proposal still failed to secure the support of Evonik's board of directors.

In an ad hoc announcement released on October 30, Evonik confirmed that its board of directors had reviewed BASF's acquisition proposal and decided not to enter into formal negotiations. However, Evonik remains willing to engage in confidential information exchange with BASF to explain its position and to understand the commercial rationale and key considerations behind BASF's acquisition proposal.

BASF's acquisition proposal also involves employment guarantees and production site arrangements. According to transaction terms disclosed by the media, BASF plans to honor Evonik's existing employment guarantee agreements, extending the relevant commitments through 2032, and to preserve the important status of existing production sites. BASF CEO Markus Kamieth previously stated that any potential transaction must create value for shareholders and that the company would not pursue an acquisition at any cost.

Evonik's major shareholder is Germany's RAG Foundation, which holds approximately 44% of the shares. The foundation previously confirmed that it had received information about BASF's approach regarding a potential acquisition but has not yet publicly made a decision in favor of the transaction with respect to the new offer.

As of October 30, the two parties had not entered into formal acquisition negotiations, had not signed any binding transaction agreement, and had not announced any subsequent acquisition procedures. Evonik maintains its independent operating direction, while BASF has not yet made a formal decision on further actions following its increased offer.