BASF confirms talks regarding potential takeover of Evonik
Against the back of a competitive structure in Europe, German chemicals firm BASF SE has confirmed exploratory talks with RAG-Stiftung and Evonik Industries regarding a potential takeover of Evonik. The course and outcome of these exploratory talks remain open at this stage, it adds.
As part of its corporate strategy, BASF says it continuously evaluates the strategic option of acquisitions that strengthen its core businesses, deliver a strong strategic fit, drive profitable growth and create value.
The company further adds it will inform the market in accordance with regulatory requirements without delay, if and to the extent required.
Evonik said earlier it had "received a non-binding approach from BASF regarding a voluntary public takeover offer for all shares of the company".
RAG Foundation, which holds 43% in Evonik, also said it had been contacted by BASF regarding a takeover offer for Evonik.
BASF has a market capitalisation of EUR45.8 billion, while Evonik is currently valued at EUR9.2 billion, according to a Reuters report.
Evonik's products include high-tech plastics, feed additives as well as ingredients for coatings and household products, while BASF makes engineering plastics, super absorbent polymers, vitamins and a wide range of chemicals for industrial uses.
Europe is the largest market for Evonik and BASF and BASF has pledged to increase revenue contributions from Asia and other regions. However, the company, along with the rest of the European chemicals sector, has been held back by rising energy costs and weak demand.
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