BASF SE has boosted its takeover offer for German chemicals group Evonik Industries AG to more than €11 billion ($12.3 billion), people familiar with the matter said. Ludwigshafen, Germany-based BASF has made a new bid of around €24 per share, improving on a previous proposal that valued Evonik at roughly €10.3 billion. The revised offer includes guarantees on jobs and production sites, with Evonik's headquarters in Essen remaining an important location for a combined entity.
Evonik shares rose as much as 5.2% in Frankfurt on Friday, and were up 3.6% at €21.44 in the early afternoon, giving the company a market value of around €10 billion. The new bid represents a roughly 38% premium to Evonik's closing price before news of BASF's takeover interest emerged in September. This week, BASF also promised to honor Evonik's existing job guarantees through 2032 as it intensified lobbying for the deal.
Deliberations are ongoing, and there is no certainty they will result in a transaction, the people said. Representatives for BASF and Evonik declined to comment. A key factor will be Evonik's largest shareholder, RAG-Stiftung, which requires a dividend from Evonik to fund the running of drainage pumps across the Ruhr region. BASF, with a market capitalization of around €47 billion, is in the midst of a restructuring, having sold a majority stake in its coatings business to Carlyle Group Inc. and preparing its Agricultural Solutions unit for a potential Frankfurt listing.
A takeover would add specialty products to BASF's portfolio, while Evonik focuses on higher-margin segments such as additives, adhesive resins and high-performance polymers. Evonik is also weighing a takeover of US-based Ashland Inc., people familiar with the matter said. The deal comes as Europe's chemicals industry struggles with weak demand and global oversupply, and would add to a wave of dealmaking in Germany that could make 2026 one of the strongest years for German M&A.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing