Evonik Confirms Non-Binding BASF Takeover Approach; Shares Close 7.2% Higher With No Talks Under Way

Evonik Industries confirmed on Friday that it has received a non-binding approach from BASF regarding a voluntary public takeover offer for all of its shares, though the German specialty chemicals maker stressed that no talks are currently taking place between the two companies. The disclosure, filed as inside information under EU market rules, sent Evonik shares up 7.2% by the close while BASF stock fell 3.6%, as investors weighed the prospect of a deal that could reshape Germany's chemicals sector.

What Evonik and BASF Have Said

In a statement carried by tradingview.com, Evonik's Executive Board said it "confirms that it has received a non-binding approach from BASF SE regarding a voluntary public takeover offer for all shares of the company," adding that "currently there are no talks taking place." The company said it does not intend to comment further on the matter beyond its legal obligations.

BASF, for its part, confirmed it is in exploratory talks, describing acquisitions as a strategic option it "continuously" evaluates to strengthen its core businesses and drive profitable growth, according to AOL's report. BASF characterized the outcome as "open at this stage," language that mirrors Evonik's own caution that no negotiations are underway.

The approach was first reported by the Financial Times, which said BASF had contacted both Evonik and its biggest shareholder, the RAG Foundation, about a potential takeover that could create a German champion capable of competing with Chinese and American rivals, according to Euronext's account of the Reuters wire. A summary of the same FT report by Newsquawk carried an explicit caveat that there is no guarantee an agreement will follow.

The RAG Foundation, which Reuters said holds a 43% stake in Evonik, confirmed it had been contacted by BASF regarding the offer, though earlier in the day it was reported as unavailable for comment. A separate account of the FT report, relayed by finance.yahoo.com, described the foundation's holding as a "critical 44% controlling stake," a discrepancy that underscores how early-stage and fluid the reported details remain.

Market Reaction and the Valuation Gap

Evonik's 7.2% close was part of a broader intraday move; the stock was up as much as 8% at 1320 GMT, according to Euronext's report, before settling into its closing gain as BASF shares slipped 3.6% for the session. Traders cited by Euronext and AOL said Evonik's advance extended a recent rally that had already been partly attributed to takeover speculation.

Reuters, via the Euronext report and AOL, put BASF's market capitalization at €45.8 billion ($52.2 billion) against Evonik's €9.2 billion, a gap of €36.6 billion, or roughly 398% larger, by our calculation (45.8 minus 9.2, divided by 9.2). Investing.com's account of the FT report cited somewhat different figures, placing Evonik's market capitalization at €8.4 billion with an enterprise value of approximately €12 billion once net debt is included, a spread of €3.6 billion, or about 30% below the enterprise value figure by our calculation (8.4 minus 12, divided by 12). That same account put BASF's valuation at roughly €47 billion. The two sets of figures differ in detail but agree on the broad picture: BASF is roughly five times Evonik's size by market value, and Evonik carries meaningful net debt beyond its equity market capitalization.

Reuters, via the Euronext report, and Investing.com's account of the FT report both put the combined annual revenues of BASF and Evonik at about €74 billion last year. Reuters separately reported that BASF's 2025 group revenue of €59.7 billion ($68.9 billion) was almost the same as that of the chemicals segment of China's Sinopec, putting at risk BASF's years-long rank as the world's largest company by chemicals revenue. Read together, those reported figures suggest — as an interpretation of the numbers rather than a rationale stated by either company — that additional scale would be one route for BASF to defend that ranking.

Strategic Fit and Potential Obstacles

Reuters described the product overlap as substantial: Evonik makes high-tech plastics, feed additives and ingredients for coatings and household products, while BASF produces engineering plastics, super absorbent polymers, vitamins and a wide range of industrial chemicals. Arne Rautenberg, head of equities at Union Investment, told Reuters there was "a sound business case" for a deal, arguing that "by acquiring Evonik, BASF could strengthen its position in the speciality chemicals sector and increase capacity utilisation."

Geographically, however, Reuters noted the fit is less clean: Europe is the largest market for both companies, while BASF has pledged to grow revenue from Asia and other regions rather than deepen its European concentration. Investing.com's account added that Evonik's leadership would likely demand a substantial takeover premium along with clear evidence that folding its specialty additives and polymers businesses into BASF creates durable value, and flagged possible domestic antitrust scrutiny even as European regulators have shown recent openness to regional consolidation.

A Newsquawk analysis, relayed on newsquawk.com, cautioned that large German chemicals combinations of this kind are rare precisely because overlapping commodity businesses attract prolonged antitrust review, while German stakeholder structures such as works councils and government interest in strategic industries tend to slow the process. The analysis identified the signals worth watching as confirmation or denial from either company, movement in the target's spread to peers, and comment from regulators or labor representatives. Both companies issued statements on Friday; no comment from regulators or labor representatives had been reported at that point.

BASF's Wider Restructuring Backdrop

The approach comes as BASF pursues a broader push to simplify its portfolio. Reuters reported that CEO Markus Kamieth said in June the business environment was at its most difficult in at least the last 25 years, with the global balance of industrial power shifting toward Asia, and that he has been driving BASF to exit or separate businesses not closely integrated with the group's plants. Reuters said BASF is preparing its Agricultural Solutions unit for a possible IPO by mid next year, while Investing.com's account referenced a planned 2027 listing instead. A day before the Evonik report, BASF's own release on basf.com detailed a new global setup for Agricultural Solutions expected to become effective January 1, 2027, tied to its transformation into a standalone business; the division generated €9.6 billion in sales in 2025 and invested €990 million in R&D that year.

BASF has also been reshaping its coatings exposure, though accounts of the transaction size diverge: Reuters put the sale of a majority stake in BASF's coatings business at €5.8 billion, while Investing.com described a €7.7 billion sale of a majority stake in the automotive coatings unit to Carlyle. Separately, Reuters noted that Germany's chemicals sector is contending with rising energy costs and softer demand, with industry association VCI forecasting a 1.5% production decline this year, even as European producers including BASF have received a temporary competitive boost because Asian rivals have been harder hit by supply disruptions linked to the Middle East conflict.

Bottom Line

Friday's disclosures confirm only that BASF has made a non-binding approach, that BASF describes the exploratory talks as open at this stage, and that Evonik says no talks are currently taking place, according to both companies' own statements. Interpreting those facts: the scale mismatch between the two firms, the divergent valuation figures reported by different outlets, and the overlapping-but-not-fully-complementary business lines all point to an uncertain path before any formal offer, premium or structure could be defined. No deal terms have been disclosed in the public record.