Do not touch job guarantees: Report: BASF makes commitments to take over Evonik

BASF's first attempt to take over Evonik is not enough for the board of directors. Now the chemical giant is signaling its willingness to accommodate in a particularly sensitive point.

According to insiders, the Ludwigshafen-based chemical giant BASF would not affect its location and employment guarantees if it took over Evonik. BASF is prepared to make corresponding commitments in an agreement with Evonik, two people close to the group told the Reuters news agency. Despite planned job cuts at the Essen-based chemical company, operational layoffs are ruled out in Germany until 2032. The reduction must therefore take place on a voluntary basis with severance payments. “BASF feels bound to that. They wouldn’t shake it,” said one of the insiders.

With such promises, BASF could try to appease Evonik's employee representatives and politicians in North Rhine-Westphalia, who are skeptical about a sale of the company. BASF declined to comment on the information. On Wednesday, the North Rhine-Westphalia state parliament wants to deal with the issue at the request of the SPD. "The Ruhr area must not foot the bill - secure Evonik's independence and jobs," the motion is titled. The IG BCE union had also called for future prospects for Evonik employees and investment commitments for the locations.

Europe's largest chemical company BASF confirmed exploratory talks with Evonik in September, but was initially rejected by the board of directors with a takeover offer worth 22.15 euros per share. This would value Evonik at 14 billion euros. The Evonik board is insisting on a better offer before starting negotiations. There had previously been signals in the BASF environment that the 22.15 euros per share would not be the last word.

The RAG Foundation, as a major shareholder (43 percent) of Evonik, discussed the offer on Friday, but does not want to make a decision over the head of the board. The Coal Foundation, which has to generate the money necessary for the follow-up costs of hard coal mining, had previously announced that it would reduce its stake in Evonik to 25.1 percent.