Takeover approach and initial rejection

German specialty chemicals producer Evonik has rebuffed an acquisition offer from domestic rival BASF after determining the bid was too low. People familiar with the negotiations disclosed on 28 September 2026 that Ludwigshafen-based BASF had offered approximately 22.15 euros per share for the Essen-based group. Evonik declined to release an official statement regarding the proposal, while BASF declined to comment on the specific price tag. Following news of the rejected approach, Evonik shares rose by up to 2.5% to reach 19.85 euros in Frankfurt trading on Monday. BASF shares had previously dropped 4% on Friday after both groups confirmed they were conducting exploratory discussions.

Valuation and transaction structure

The proposed acquisition represents an equity value of 10.3 billion euros, or an enterprise valuation of approximately 14 billion euros once existing debt is factored into the calculation. The 22.15 euro per share figure reflects a premium of roughly 28% to 29% compared with Evonik's share price prior to the emergence of transaction reports. A completed combination would rank alongside BASF's 2018 purchase of Bayer's seed and herbicide businesses for 7.6 billion euros as one of the largest transactions in the group's 160-year corporate history. BASF emphasized that its offer followed a disciplined corporate acquisition strategy focused on strengthening core operations.

“Our valuation is based on synergy potential that can only be verified with the involvement of Evonik.”

Political scrutiny and foundation governance

The transaction faces significant governance hurdles due to the ownership structure of Evonik. The RAG-Stiftung foundation controls between 43% and 44% of Evonik shares, giving it decisive voting power over any proposed change of control. North Rhine-Westphalia is directly involved in the foundation's oversight, with state Minister-President Hendrik Wüst holding a seat on the board of trustees. The foundation declined to comment on the preliminary offer, but state officials expressed reservations regarding potential plant closures and employment reductions. North Rhine-Westphalia Economy Minister Mona Neubaur stated that state authorities are monitoring the developments closely.

“Every solution must be measured by whether it gives a future to investments at locations in North Rhine-Westphalia and the people who work there.”

Union response and industrial pressures

Labor representatives also expressed skepticism regarding the industrial logic of combining the two chemical groups. Michael Vassiliadis, chairman of the chemical workers union IG BCE, holds positions on both the supervisory board of BASF and the board of trustees of the RAG-Stiftung. Vassiliadis argued that creating a larger corporate entity does not automatically protect manufacturing sites or workforce headcounts.

“A purchase of a successful company by another does not become a story of the future for sites and employees simply because the new entity becomes larger.”

The takeover proposal follows broader strain across the European chemical industry, which faces high energy and climate costs alongside increasing competition from producers in China. Data from consultancy Roland Berger indicates that nearly a tenth of European chemical production capacity is already scheduled for closure. Analysts at Deutsche Bank calculate that product overlaps account for roughly a third of BASF's sales and two-thirds of Evonik's revenue. Evonik continues to implement its own internal restructuring and cost reduction programs while managing weak operating profit projections for 2030.