Concessions expected: Insider: BASF has by no means written off the Evonik takeover

The world's largest chemical company BASF has rejected its first offer to take over its competitor Evonik. Politicians have long since intervened in the takeover. It's about jobs and locations. The DAX group is apparently not deterred by this.

According to insiders, the chemical giant BASF does not want to let up in the struggle to take over its competitor Evonik. “One can assume that the current offer is not the last word,” said an insider close to the Ludwigshafen DAX group. If BASF enters into discussions with Evonik, an increase in the offer would be possible, said a second person familiar with the process. The statements are likely to be of interest to Evonik's major shareholder RAG-Stiftung. The Coal Foundation's board of trustees met at midday to discuss the offer.

BASF is also considering commitments to the Evonik workforce - including with a view to locations, an insider said. It was welcomed in the BASF environment that the major Evonik shareholder had looked into the group's interest in Evonik, said another insider. A committee of the BASF supervisory board is also discussing the status of the matter, it said. BASF did not want to comment on the information. An Evonik spokesman said there were no further discussions with BASF.

BASF and the Essen-based specialty chemicals group Evonik confirmed exploratory talks in September. According to insiders, Evonik rejected an initial takeover offer from its larger rival at the end of September. At that time, BASF offered around 22.15 euros per Evonik share. The Essen-based company was valued at around 14 billion euros including debts - this was not enough for Evonik.

The RAG Foundation, which holds around 43 percent of Evonik, will play a key role in a possible merger. She also confirmed that she had been approached by BASF. She had also declared that she would be able to sell her entire share in Evonik. The foundation must use its billions in assets to cover the follow-up costs of the discontinued hard coal mining.

The foundation's board of trustees is made up of politicians and trade unionists. The chairman is the CDU politician Armin Laschet. North Rhine-Westphalia Prime Minister Hendrik Wüst, Saarland Prime Minister Anke Rehlinger, Federal Finance Minister Lars Klingbeil, Federal Economics Minister Katherina Reiche and IG-BCE boss Michael Vassiliadis are also members of the committee. “The jobs and the company’s independent development must not be questioned,” the North Rhine-Westphalia state government had already stated. Evonik is an employer for more than 11,000 employees in the state.

Wüst campaigned for the Board of Trustees meeting this Friday, said an insider. In North Rhine-Westphalia he is being put under pressure by, among others, the North Rhine-Westphalia SPD, which is campaigning for the state to invest in Evonik. The topic will be discussed in the NRW state parliament next Wednesday. BASF is now apparently ready to address the concerns with commitments to Evonik's workforce. The Essen-based company employs around 31,000 people worldwide, while BASF employs around 95,000.