BASF's proposed acquisition of Evonik remains at an impasse after senior executives from both companies met over the weekend, with Evonik maintaining its opposition to the improved €24-per-share proposal, which values the specialty chemicals group at approximately €11.18 billion (US$12.5 billion).
The meeting, held on Saturday, November 7, brought together the companies' chief executive officers and chief financial officers. It was an informational exchange rather than the start of formal takeover negotiations.
The discussions ended without a roadmap for further negotiations, and no additional meetings are currently scheduled, according to reports by Reuters and Handelsblatt on November 9.
Evonik reiterates its commitment to independence
Evonik used the meeting to explain how it intends to increase its value as an independent company, outlining its strategic plans and financial targets for the coming years, according to Handelsblatt.
In an interview with the Frankfurter Allgemeine Zeitung (FAZ) ahead of the weekend meeting, Evonik's interim CEO, Claus Rettig, defended the company's independent strategy, questioning whether greater scale necessarily translates into a competitive advantage. He pointed instead to a trend towards greater specialization and focus in other industries.
"What BASF has offered, we can also deliver ourselves, and our plans will certainly take us beyond that," Rettig told the newspaper.
He also indicated that Evonik intended to play an active role in the consolidation of the chemicals industry rather than remain a potential acquisition target. Rettig said the company saw opportunities for growth in Germany, Europe and the United States and had the financial capacity to pursue acquisitions, although it was not currently seeking them proactively.
Evonik's strategy includes achieving a return on capital employed (ROCE) of approximately 11% by 2029, compared with 6.1% in 2025. The company expects this measure to exceed 8% in 2026.
BASF raises its offer and outlines strategic rationale
BASF initially approached Evonik in September with a proposal of €22.15 per share, valuing the company at approximately €10.3 billion. The offer was subsequently increased to €24 per share in October, representing an equity valuation of around €11.18 billion. According to Handelsblatt, the revised proposal is an all-cash offer.
BASF CEO Markus Kamieth has presented the proposed combination as a strategic opportunity amid increasing consolidation in the global chemicals industry, describing it as a "strong German response to global competition". He has also emphasized that BASF would not pursue the acquisition at any price.
To address concerns over the potential impact of a takeover on Evonik's German workforce and industrial sites, BASF has outlined a series of commitments.
In a video statement on October 22, Kamieth pledged to rule out compulsory redundancies in Germany until 2032 and maintain existing collective agreements and social partnership arrangements. He also said Essen and North Rhine-Westphalia would remain important locations for the combined business, while indicating BASF's willingness to continue operating the Marl and Wesseling chemical parks.
The strategic rationale rests partly on the complementary nature of the two businesses. BASF argues that Evonik could obtain certain chemical feedstocks more cheaply and reliably through its integrated production network, while a combination would bring together BASF's broad chemicals portfolio with Evonik's specialty chemicals activities.
Evonik's improving financial performance strengthens its independent case
The takeover discussions come as Evonik reports improving operating performance. On November 3, the company reported a 40% year-on-year increase in third-quarter adjusted EBITDA to €629 million, while sales rose 13% to €3.825 billion.
Free cash flow reached €369 million in the quarter, compared with €300 million a year earlier. However, net income remained negative at €53 million, partly reflecting €313 million in provisions for restructuring measures under the company's Evonik Tailor Made (ETM) efficiency program.
For the full year, Evonik now expects adjusted EBITDA to reach the upper half of its previously communicated guidance range of €2.0–2.2 billion. The ETM program has also been extended through 2029 as part of the company's efforts to improve its cost structure and profitability.
These developments provide financial context for management's argument that Evonik can improve its performance and create shareholder value independently, without accepting the proposed combination with BASF.
For now, the two companies remain apart. Evonik has not agreed to enter formal negotiations, while BASF has yet to secure the target's support for its proposed acquisition. Whether BASF will revise its offer again remains uncertain.
