Evonik rebuffs BASF takeover approach as RAG foundation holds the final word
Evonik has turned down BASF's approach, but the decision rests with the RAG foundation, which holds 44% of Evonik's shares. Trade union IG BCE has raised doubts about the foundation's resolve.
Evonik cold-shoulders BASF
Evonik has shown BASF the cold shoulder, according to RP Online, but the final word lies with the RAG foundation, which owns 44% of Evonik's shares. Handelsblatt reports that a statement from the North Rhine-Westphalia state chancellery ended with the sentence that Evonik's independent development must not be endangered. Insiders in the company and the chemical industry read this as a hidden preliminary rejection of the deal. They say BASF is aiming for a full takeover followed by complete integration into its Ludwigshafen group, which does not fit with any form of independence for the target.
The foundation and the state government
The state government holds a strong position on the supervisory board of the RAG foundation. The board is chaired by former NRW minister-president Armin Laschet (CDU), and federal economy minister Katherina Reiche (CDU) and finance minister Lars Klingbeil (SPD) are also members. Participants expect Wüst to try first to block BASF's approach or at least postpone a decision, since anything else is considered inopportune in the run-up to the NRW state election in April 2027. An adviser is cited as saying that chemical workers blowing whistles in front of the state chancellery in Düsseldorf, fearing for their jobs at Evonik, is something Wüst cannot use. Whether this line will prevail is by no means certain, and it is also unclear whether the board will reach any decision on Friday.
Union letter to works councils
IG BCE chairman Michael Vassiliadis spent several days in Singapore this week, where he met Evonik's interim chief Claus Rettig for an exchange. After returning, Vassiliadis sent a letter on Wednesday to the works councils at Evonik and BASF, written together with Alexander Bercht. The letter questions a complete sale to BASF but does not clearly reject the offer, and it does not support it either. It concerns lost and threatened jobs in the chemical sector and the cost-cutting programmes at both BASF and Evonik. The letter poses three questions to the works councils.
Doubts about the foundation
RP Online reports that the letter casts doubt on the steadfastness of the RAG foundation, which is led by Bernd Tönjes. Vassiliadis reminds the foundation of its obligations and questions its investment judgement. The SPD is calling for a state stake in Evonik.
Jobs and the contest for union support
Evonik recently announced a further cut of 3200 jobs. Evonik managers interpret the union's three questions as an invitation to compete for the favour of the union, under the principle of who makes the best offer to employees. According to circles cited by Handelsblatt, Evonik sees itself ahead in that contest despite the recently announced job reductions.
