Evonik Draws a Line: Talks on Information, Not on Takeover
Published on 10/30/2026 at 15:11 | Editorial boerse-global.de
Evonik's board has rejected negotiations with BASF over a voluntary public takeover offer, opting instead to keep the specialty chemicals group on its independent course. The stance, announced by the company, does not close the door entirely — Evonik says it remains open to a purely informational, confidential exchange with its larger rival. The distinction matters: readiness to talk is not readiness to negotiate a combination.
BASF had signalled its interest in a letter dated 22 October, and the board's statement fixes where Evonik stands on it. Any contact on offer is expressly confined to an exchange of information and should not be read as consent to talks about a merger.
Two positions, side by side
Shareholders now face a clear split. BASF is pushing for a combination; Evonik wants to shape its future alone. The confidential channel does nothing to alter that declared direction, and willingness to share information cannot be taken as a step toward agreement on a deal.
That independent bent extends to a separate strategic review. Reuters reported roughly a week ago, citing two insiders, that Evonik is examining a takeover of US rival Ashland — a process that reportedly began before BASF made its approach. Evonik declined to comment, according to the report. No acquisition has been confirmed; the report describes a review, and therefore a possible strategic option, rather than a signed deal. The distinction is worth holding onto: the independence pledge is a company statement, while the Ashland talk remains uncommented media reporting.
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The question of future shape also touches Syneqt, the Evonik subsidiary that has been put up for sale. On Tuesday the unit said, according to Reuters, that independence made strategic sense, with a spokesperson adding that its roughly 3,500 jobs were not at risk. That speaks to the subsidiary's own outlook and is separate from the parent board's decision on BASF talks.
The price gap behind the expected rebuff
Weighing on investors is a choice between the prospect of a sweetened BASF bid and a continuation of the standalone strategy. According to the Financial Times, Evonik is likely to reject an improved offer worth around EUR 11 billion on undervaluation grounds. Such a refusal would not necessarily end the takeover ambitions: at a higher price and with a more convincing strategic case, Evonik could stay open to talks.
Price is the first yardstick. The improved offer stands at EUR 24 per share, per the FT, against a previous close of EUR 21.04 — a gap that shows market price and bid price are not the same thing, though the spread alone proves neither an imminent agreement nor any particular probability of completion. Evonik had already turned down an initial EUR 22.15 per share, the report said, so the fresh increase is no proof that BASF has met the other side's expectations. A clearer explanation of a merger's strategic value is also expected.
Then there is the anchor shareholder. The RAG-Stiftung holds around 43.8% of Evonik, and its support would be needed for any transaction. An understanding between the two managements alone would not suffice; the foundation's position ranks among the decisive variables for any progress.
What a better package could unlock
The positive scenario is not a repeat of the existing bid. BASF would need to lift the price further and set out credibly what extra value a combination would create. Should Evonik judge that combination sufficient, the expected rejection could become the starting point for fresh talks.
Here it pays to separate earlier contacts from live negotiations. Chemical Processing reports that BASF has confirmed exploratory talks with Evonik and the RAG-Stiftung, while Evonik has said no talks are currently taking place. An expressly confirmed resumption of negotiations would therefore be a more substantial signal for investors than another general expression of interest. The foundation could also move things along: its board of trustees is due to meet again soon, according to WAZ, though no approval can be inferred from that. Signs of support for talks there would improve the odds of a rapprochement, turning a higher price from a demand into part of a genuinely negotiable package.
The serious counter-scenario is a valuation gap that cannot be bridged. BASF could forgo another increase; Evonik could hold to its view that the offer does not do the company justice. The existing bid would then be no reliable future payout for shareholders. Evonik is pursuing a standalone strategy of its own, the FT reports, including possible acquisitions as well as job cuts and plant closures, and it is said to be among the suitors for Ashland. Those plans offer an alternative to a merger but do not amount to delivered results — and a possible Ashland purchase would be an additional strategic decision, not evidence that going it alone automatically creates more value.
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The dates that matter now
As long as Evonik keeps later talks open and BASF stays willing to make concessions, a better offer remains a plausible scenario. If either side drops that readiness, the standalone strategy should carry more weight in the investment case, and the persuasiveness of Evonik's own plans would matter more than the hoped-for takeover price.
The next catalyst is a public statement from Evonik, which the FT says could come in the coming days; investors should watch for concrete conditions attached to any talks, since a rejection with clearly named terms reads differently from a blanket dismissal of a combination. The foundation's renewed deliberations also deserve attention — whether a firm position on the transaction emerges from them could show whether the expected rebuff opens the way to negotiations or pushes the takeover plans further back.
On the operating side, Evonik has pencilled in 3 November 2026 for its third-quarter report. The two levels should be kept apart: the current statement sets out the desired independent course, while the quarterly report will turn the focus to business performance. An informational exchange with BASF neither replaces that reporting nor marks the start of takeover negotiations.
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