BASF and Evonik Executives Hold Talks on €11.18 Billion Acquisition Proposal

en.Wedoany.com Reported - On November 7–8, the CEOs and CFOs of German chemical group BASF and specialty chemicals company Evonik Industries held preliminary talks regarding a potential acquisition transaction, involving BASF's €11.18 billion acquisition proposal. On November 9, Reuters, citing two people familiar with the matter, confirmed that the talks had taken place. After the talks, Evonik continued to oppose BASF's raised offer, and the two sides did not enter formal acquisition negotiations, nor did they schedule a next round of meetings.

The talks continued the confidential information exchange arrangement proposed by Evonik on October 30. Evonik's board had previously reviewed BASF's voluntary public acquisition intent letter submitted on October 22, decided to continue pursuing its independent operating strategy, and agreed to explain its position to BASF and hear the other side's business rationale for the acquisition. BASF had previously raised its acquisition offer from €22.15 per share to €24 per share, corresponding to an equity valuation of Evonik of approximately €11.18 billion.

According to information disclosed by the German business daily Handelsblatt on November 9, Evonik's management reiterated during the weekend talks that the company's existing business restructuring and independent development plan are more conducive to the development of the specialty chemicals business. The two sides did not form any follow-up arrangements regarding the launch of specific acquisition negotiations. Reuters subsequently cited people familiar with the matter to further confirm that Evonik maintained its position of opposing the existing acquisition proposal. Neither BASF nor Evonik issued formal comments on the outcome of the talks.