IGBCE expresses skepticism about BASF's takeover offer to Evonik

The chemical union IGBCE has expressed skepticism about BASF's takeover offer for Evonik. After BASF announced that it was exploring a takeover of its competitor Evonik, many open and critical questions remained, the union in Hanover explained.

According to IGBCE Chairman Michael Vassiliadis, a takeover of a successful company by another successful company will not become a story of the future for their locations and employees simply because the new entity will become larger. What may seem logical to shareholders and stock exchange traders does not necessarily make sense when looking at the employees, the locations, the market and the domestic value creation.

RAG-Stiftung holds almost 44 percent of Evonik shares

Last Friday, the companies involved and the RAG Foundation, Evonik's largest shareholder, announced that there was an offer. Evonik spoke of a non-binding approach from BASF. “This is aimed at a voluntary public takeover offer for all of the company’s shares.” Evonik said on Friday that no discussions were currently taking place. BASF had announced: “The progress and outcome of the investigations are currently open.” The RAG Foundation, which finances the follow-up costs of German hard coal mining, currently holds almost 44 percent of Evonik.

“For the employees and locations of BASF and Evonik, we need future perspectives and investment commitments,” explained Vassiliadis. This is the only way to strengthen the German and European locations in concrete terms, despite the high pressure for consolidation in the industry. Tough restructuring and staff reduction programs are already underway in both companies. “Both companies should be careful not to overtighten this screw.”