Germany’s BASF has approached specialty chemicals producer Evonik about a potential takeover, opening the possibility of a major combination between two of the country’s largest chemical companies.

BASF confirmed on September 25 that it was conducting exploratory talks with Evonik and its largest shareholder, RAG-Stiftung, regarding a potential takeover of Evonik. The company said the course and outcome of the discussions remained open.

Evonik separately confirmed that it had received a non-binding approach from BASF concerning a potential voluntary public takeover offer for all of its shares. However, Evonik stressed that “currently there are no talks taking place” and said it would not comment further beyond its legal obligations.

The contrasting descriptions underline the very early stage of the potential transaction. No binding offer, transaction price, financing arrangements or timetable has been disclosed.

RAG-Stiftung holds 43.8% of Evonik

BASF has also contacted RAG-Stiftung, Evonik’s largest shareholder.

RAG-Stiftung confirmed on September 25 that it had been approached by BASF regarding a potential voluntary public takeover offer for Evonik. The foundation said it currently holds approximately 43.8% of Evonik’s issued shares.

RAG-Stiftung also disclosed that it has three outstanding bonds with exchange rights into Evonik shares.

No offer price disclosed

Neither BASF nor Evonik has disclosed a proposed offer price.

Evonik’s shares rose sharply following news of BASF’s approach: Evonik shares gained around 7% on September 25, while BASF shares fell by approximately 3.5%.

Reports before and during the market reaction put Evonik’s equity value at roughly €8.4 billion to €9.2 billion. Its enterprise value, including net debt, has been estimated at around €12 billion.

These figures represent market valuations rather than an indication of the price BASF may be prepared to pay.

Strategic rationale

BASF gave no specific details about the businesses it would seek to acquire or the synergies it expects from a combination.

In its September 25 statement, the company said it continuously evaluates acquisitions that strengthen its core businesses, provide a strong strategic fit, drive profitable growth and create value, adding that it takes a disciplined approach to acquisitions.

A takeover of Evonik would expand BASF’s presence in specialty chemicals. Evonik operates across areas including high-performance polymers, specialty additives, nutrition and care, and other chemical applications serving a broad range of industries.

The potential deal would also come against a challenging backdrop for European chemical producers, which are facing weak demand in some markets, high energy costs and increasing competition from producers in Asia.

Evonik is already restructuring

The approach comes only three days after Evonik announced a significant new phase of its restructuring and growth strategy.

On September 22, Evonik said it would continue its “Evonik Tailor Made” efficiency program, with the second implementation phase scheduled to run from 2027 through 2029.

The company plans to reduce its global workforce by 3,200 positions, including around 2,150 jobs in Germany. Evonik said the measures are intended to lower its cost base and create financial room for investments in growth.

The company is also continuing the planned divestment of two major businesses: its C4 chemicals business, Oxeno GmbH, and its infrastructure business, Syneqt GmbH.

Evonik said the two divestments were progressing as planned.

The company is simultaneously reorganizing its portfolio around businesses designated as growth drivers or cash generators and is examining further investment opportunities in Asia and the Americas.

Evonik said it expects growth opportunities particularly in Asia and America and wants to improve the balance of its revenues across Europe, Asia and the Americas.

The company is also assigning specific future roles to its six major German production sites.

Focus on specialty chemicals and growth markets

Evonik’s strategy is aimed at concentrating investment on businesses with stronger growth prospects while reducing exposure to activities where it sees limited prospects.

Among the areas identified for growth is its newly established Designed Polymer Solutions business line, which brings together activities serving markets including aerospace, automotive and gas separation, including biogas and hydrogen.

Evonik is also pursuing growth projects in healthcare and biotechnology in Canada and Slovakia, with total investment in the three-digit-million-euro range.

The company said its transformation is intended to strengthen its competitive position while creating greater financial flexibility.

Evonik generated €14.1 billion in sales and €1.9 billion in adjusted EBITDA in 2025. The group has approximately 31,000 employees and operates in more than 100 countries.

BASF also pursuing portfolio changes

BASF, meanwhile, has been reshaping its own portfolio and focusing investment on its core businesses.

The company generated around €60 billion in sales in 2025. Its core businesses include Chemicals, Materials, Industrial Solutions, and Nutrition & Care, while its standalone businesses include Surface Technologies and Agricultural Solutions.

The potential Evonik transaction would therefore represent a significant addition to BASF’s existing specialty chemicals activities.