Evonik Industries said on Oct. 30 that its executive board had reviewed BASF's letter of Oct. 22 and decided not to enter negotiations over a potential combination. The board said it remains focused on its strategic direction and further development of Evonik as an independent company, while expressing willingness to engage in a purely informational and confidential exchange so BASF can outline the rationale for its interest.
BASF initially offered €22.15 per share, valuing Evonik at about €10.3 billion, and improved this to €24 per share in the last week of October, valuing the company at roughly €11.18 billion, according to reports. Neither company has officially released financial details of the proposed offer.
On Nov. 3, Evonik reported Q3 sales up 13% year on year to about €3.8 billion, the biggest quarterly gain since Q3 2022, driven largely by higher selling prices and 2% higher volumes. Adjusted EBITDA rose 40% to €629 million. The company posted a net loss of €53 million, partly due to €313 million in provisions for its extended cost-cutting programme.
Interim CEO Claus Rettig, standing in during Christian Kullmann's absence through illness, said Evonik is strong and robust and more optimistic about its outlook. Evonik's Tailor Made restructuring includes about 3,200 job cuts, mostly in Germany, and the planned closure of its Bitterfeld chlorosilanes facility in April 2027.
BASF CEO Markus Kamieth has argued that consolidation in European chemicals is necessary amid intensifying Asian and Middle Eastern competition, and said any transaction closing should not be expected before 2028 given regulatory timelines. Evonik has also reportedly been examining a possible acquisition of US specialty chemicals firm Ashland.
