BASF confirms preliminary talks to acquire Evonik

BASF says it is in preliminary discussions to buy Evonik and that the outcome remains open. Sources told Mergermarket the odds of a deal closing soon are low.

BASF has confirmed it is in preliminary discussions to acquire Evonik. The company said the outcome of the talks remains open.

The Financial Times first reported the approach. People close to the matter told Mergermarket, via ChemNet, that the odds of a deal closing soon are low. They cited capital constraints and the complexity of the spin-off process. BASF is not expected to pursue a major acquisition before it completes the initial public offering (IPO, the sale of shares to the public) of its agricultural solutions business, which is targeted for mid-2027. A separate source described BASF as cash constrained until that listing is done, Dealreporter reported via TradingView.

JPMorgan analyst Chetan Udeshi called a BASF-Evonik combination unlikely, arguing that BASF has better alternatives. JPMorgan rates Evonik Underweight, according to ad-hoc-news.de.

Evonik's largest shareholder, the RAG-Stiftung foundation, holds about 43 per cent of the company. It has said it plans to bring that stake down to a long-term target of 25.1 per cent, DER AKTIONÄR reported. Evonik shares gained about 3.71 per cent heading into the open on September 24 on speculation about the talks, ad-hoc-news.de reported. Two days earlier, Evonik had announced the next phase of a restructuring plan for 2027 to 2029. It includes divesting its Oxeno and Syneqt units, which together employ about 4,300 people. Separate reporting on the plan cited 3,200 job cuts, according to ms-aktuell.de.

The approach fits a wider wave of takeover activity across sectors. Consolidation in chemicals faces near-term headwinds from weak demand and margin pressure in Europe. BASF is widely seen as focused on completing the listing of its agricultural unit first.