Chemicals: Evonik rejects takeover even after exchange with BASF

The heads of the chemical companies met for the first time at the weekend for talks. According to Handelsblatt information, there are no concrete negotiations in sight.

Dusseldorf. In the poker over a takeover of the chemical company Evonik by BASF, the top management of the two chemical companies held personal discussions for the first time. The meeting took place on Saturday in the Frankfurt area, according to those involved. The CEOs and CFOs as well as consultants from both companies took part.

The meeting was a “purely informative exchange” offered by Evonik, sources said. The Essen-based company underlined its desire for independence and explained how it wants to increase its value in the coming years.

BASF, in turn, promoted the common path from which Evonik's businesses could also benefit. The world's largest chemical company launched its push to take over Evonik in September and has already increased the offer to around eleven billion euros, which corresponds to 24 euros per Evonik share.

The Evonik board immediately rejected this and reiterated this at the weekend meeting. The core argument was that the Essen-based specialty chemicals businesses could develop better in their own planned structure, it was said.

Broke up without a negotiation plan

The goals set out in the strategic planning for the coming years were explained, such as the return on capital employed, which Evonik wants to increase to eleven percent in the medium term. BASF, in turn, advertises itself as having more clout and the size of a combined group in the face of increasingly fierce global competition.

However, the top management of both companies separated without a plan for possible concrete negotiations, it was said in insider circles. These are not in sight and will continue to be rejected by the Evonik board.

The Essen-based RAG Foundation, which owns around 44 percent of the shares in Evonik, plays a decisive role in the poker. At a special meeting in October, the foundation's politically appointed board of trustees decided that the two companies would have their turn first and did not take a position.

The committee will meet for its next regular meeting on November 25th. One day before, BASF is holding this year's Capital Markets Day, which will primarily focus on the IPO of BASF's agricultural division planned for 2027.

Analysts estimate that BASF could generate between five and six billion euros by selling a minority stake. The money would then be available for external reinforcement of the core business. According to company circles, Evonik is the preferred option for BASF, but not the only one.

According to insiders, it is unlikely that there will be any movement on the matter before the two meetings at the end of November. At Evonik it is still firmly assumed that Christian Kullmann, who is ill, will return to work as CEO at the beginning of next year.

Kullmann had to undergo a serious operation in August and is currently represented by deputy CEO Claus Rettig. He is considered Kullmann's confidante.