Evonik’s decision to refuse negotiations leaves BASF’s €11.2B (~$12.5B) pursuit without a formal route forward, while the German chemical maker remains focused on its own strategic direction.
BASF has said a combination would make the two companies stronger against competitors from China and elsewhere, and identified Evonik as its preferred acquisition target.
BASF’s board approached Evonik last week about a voluntary public takeover offer. It raised the bid to €24 per share, valuing Evonik at €11.2 billion (~$12.5 billion), and attached extensive commitments on employees and sites.
Evonik’s board rejected the approach. It said it would not enter negotiations with BASF and would remain focused on its own plans. The company has nevertheless offered BASF a purely informational and confidential exchange.
The distinction draws a clear line around the current contact: information may be shared, while deal negotiations are off the table.
BASF said it was surprised that Evonik would not engage in formal negotiations. Markus Kamieth, BASF’s chief executive, said on the company’s earnings conference call this week that it was weighing other acquisition opportunities.
Evonik is Germany’s second-largest chemical maker. It is separately exploring a potential acquisition of the US chemicals company Ashland.
Evonik Industries shares fell 1.2% in European trading Friday after the board’s rejection announcement.
Comments (0)