Evonik has rejected a €10.3bn offer from German rival BASF, sparking a potential takeover battle amid consolidation efforts in Europe’s struggling chemicals industry. Ludwigshafen-based BASF offered about €22.15 per share, a nearly 29 per cent premium, but Evonik said the bid was too low for formal negotiations. The offer would give Evonik an enterprise value of about €14.2bn, according to Bloomberg data.

BASF chief executive Markus Kamieth is pursuing the deal to build a Germany-based champion with combined revenues of €74bn, better able to compete with Chinese rivals including Sinopec and American competitors such as Dow. However, any tie-up could lead to job cuts and asset sales. The position of RAG-Stiftung, which holds a 44 per cent stake in Evonik, will be key to whether a deal is reached.

RAG’s board includes Hendrik Wüst, Lars Klingbeil, Katherina Reiche, and Michael Vassiliadis, head of the IGBCE union, who has recused himself from takeover decisions. Vassiliadis warned that a BASF-Evonik combination would not benefit workers simply by creating a larger company and called for commitments on investment and site futures.