BASF has raised its takeover offer for Evonik Industries to €24 per share, valuing the German chemicals manufacturer at about €11.2 billion, according to press reports citing people familiar with the discussions.
Evonik had rejected BASF’s initial proposal of approximately €22.15 per share, which valued its equity at €10.3 billion. The new bid represents a premium of about 38% to Evonik’s share price before takeover speculation emerged in September.
BASF has reportedly pledged to protect Evonik’s jobs and production sites, including honoring existing employment guarantees through 2032. Evonik’s headquarters in Essen, Germany, would remain an important location for the combined business. Any transaction would require the support of RAG-Stiftung, Evonik’s largest shareholder, which holds 44% of its equity.
The acquisition would combine two major suppliers of specialty chemicals, but the companies’ overlapping portfolios could face competition scrutiny by European financial authorities.
The deal comes at a time when both companies contend with weak European demand, global overcapacity and pressure to reduce costs. Evonik plans to cut 3,200 jobs globally between 2027 and 2029, following previously announced reductions of about 2,800 positions through 2026.
BASF’s finances have come under pressure from weak demand and high costs in the chemicals industry. Fitch Ratings expects the company’s debt burden to ease following the sale of a majority stake in its automotive coatings business, which generated €5.8 billion in proceeds. That money gives BASF more room to reduce debt. However, buying Evonik for €11.2 billion could absorb much of that financial flexibility.