Full Breakdown
BASF Proposes Takeover of Evonik
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Core Event
On September 25, BASF SE disclosed that it had made a non-binding, voluntary public takeover approach for all shares of Evonik Industries AG. BASF, with a market capitalisation of €45.8 billion, would target Evonik, valued at €9.2 billion or €8.4 billion depending on the source. The announcement triggered immediate market reactions: Reuters reported Evonik’s share price up 8 % while BASF fell 2 %; Bloomberg noted Evonik’s intraday gain of 11 %—its biggest since March 2025—and a BASF decline of up to 3.4 %; Euronext cited a 7.2 % rise for Evonik and a 3.6 % drop for BASF at the close.
Industry Background and Strategic Pressures
Germany’s chemicals sector, a key driver of national industrial output, faces rising energy costs and weaker demand, prompting the industry association VCI to forecast a 1.5 % production decline this year. BASF’s CEO Markus Kamieth has described the current business environment as the most difficult in at least 25 years, citing a shift of industrial power toward Asia. The proposed deal is framed as a move to create a German champion capable of competing with Chinese and American rivals, especially as European peers seek to bolster profitability amid supply disruptions linked to the US-Israeli war on Iran.
Official Statements & Responses
A BASF spokesperson declined to comment further. The RAG Foundation, Evonik’s largest shareholder with a 43 % stake, was contacted about the proposal but did not provide an immediate comment.
Conflicting Reports & Gaps
Sources differ on Evonik’s valuation: Reuters lists €9.2 billion, while Bloomberg reports €8.4 billion. Share-price reactions also vary across outlets, with reported gains ranging from 7.2 % to 11 % for Evonik and declines for BASF from 2 % to 3.6 %. No definitive terms of the proposal have been disclosed, and the RAG Foundation’s stance remains unconfirmed.
Verbatim Quotes
- “By acquiring Evonik, BASF could strengthen its position in the speciality chemicals sector and increase capacity utilisation,” — Arne Rautenberg