BASF approaches specialty chemical rival Evonik over potential takeover offer

Preliminary approach and market reaction

On Friday, 25 September 2026, German chemicals company Evonik Industries AG confirmed receiving a non-binding approach from rival BASF SE regarding a potential voluntary public takeover offer for all outstanding shares. Evonik stated that formal negotiations are not currently taking place, while BASF indicated that the outcome of initial soundings remains open. Evonik shares gained up to 11% to over 20 euros in trading following the news, reaching their highest level since May 2025. Shares in BASF dropped by roughly 3% during the same session.

Financial scale and anchor shareholder

A combination would unite Germany's two largest chemical manufacturers into an entity with roughly 75 billion euros in combined annual revenue. Evonik carries a market capitalisation of approximately 8.4 billion euros, or an enterprise value of about 12 billion euros when including net financial debt. BASF holds an equity market capitalisation of around 47 billion euros. A central role in any transaction rests with the Essen-based RAG Foundation (RAG-Stiftung), which owns approximately 43% of Evonik. The foundation has previously announced intentions to lower its holding to 25.1% to reduce exposure to the chemical sector.

BASF47

Evonik8.4

BASF

47 €B

Evonik

8.4 €B

Data from the article text

Strategic reorganisations at both groups

The takeover approach arrives as both Ludwigshafen-based BASF and Essen-based Evonik execute corporate restructuring programs. Under chief executive Markus Kamieth, BASF has divested its paints and coatings business across 2025 and 2026 and plans an initial public offering for its agricultural and seed division in 2027. The company is managing approximately 20 billion euros in net debt and saw its Ludwigshafen site workforce drop below 30,000 for the first time since 1954.

“We still have a solid rating, but net debt of around 20 billion euros. That is not a level we want to see permanently at this height. Our goal is to significantly reduce financial debt next year.”

Evonik restructuring and sector conditions

Evonik is carrying out its own transformation under interim chief executive Claus Rettig, focusing resources on core specialty chemicals including coatings additives, automotive polymers, and feed amino acids. In mid-June 2026, Evonik announced plans to eliminate approximately 3,200 positions worldwide by the end of 2029, including 2,150 roles in Germany. The group is also preparing to divest bulk chemical units Oxeno and Syneqt, which employ roughly 4,300 people. Sector conditions in Germany showed signs of recovery in August 2026, when the ifo Institute business climate index for the chemical industry climbed to minus 2.4 points from minus 26.3 points, driven in part by transport disruption along the Strait of Hormuz lifting demand for domestic chemical output.