Evonik has declined to enter formal acquisition negotiations with BASF after reviewing a letter from the German chemicals group expressing interest in making a voluntary public takeover offer, the company announced.
In an online statement posted on Oct. 30, Evonik said its executive board had decided against opening negotiations based on the information available. The company remains willing to hold confidential discussions with BASF to exchange information and allow the bidder to explain its proposal.
Evonik did not provide a timetable for any further decisions, and added that the “Executive Board remains focused on its strategic direction and further development of Evonik as an independent company.”
On Oct. 22. BASF chief executive Markus Kamieth described the proposal in a letter to Evonik as serious and said Evonik offered an attractive combination of businesses, financial performance and potential synergies. He said a merged group would have a more balanced presence across major global markets. The proposed benefits depend partly on Evonik completing its announced business restructuring, including the planned sale of its C4 business.
German media reports have speculated BASF’s revised offer at €24 per share, valuing Evonik at approximately €11 billion. The reported price is nearly 40% above Evonik’s share price before takeover speculation emerged in September. Evonik had rejected an earlier proposal reportedly valuing the company at €10.3 billion. Neither company has publicly disclosed the financial terms of the offers.
Kamieth said regulatory approvals and other procedures would mean a transaction could not be completed before 2028. BASF has also said it would not pursue a merger at any cost.
Evonik is itself reported to be involved in discussions concerning the acquisition of U.S. specialty chemicals company Ashland, which has faced pressure from activist investors.