Evonik rebuffs BASF takeover approach, says 24 euros a share falls short
The Essen-based specialty chemicals maker wants to stay independent and will not negotiate. BASF called the move incomprehensible but left the door open to confidential talks.
Graphic: TERRA WORLD NEWS (own graphic based on the sources listed)
German specialty chemicals maker Evonik has rejected a takeover approach from larger rival BASF. The management board reviewed BASF's interest and decided not to enter negotiations, the Essen-based company said on Friday, adding that it would focus on developing as an independent business. Evonik said it was only willing to give BASF an opportunity, in a purely informational and confidential exchange, to explain the reasons for its offer. BASF had informed Evonik in writing on Oct. 22 of its interest in a voluntary public takeover bid.
BASF is offering 24 euros per share, according to the dpa-AFX news agency, which BASF says is a premium of almost 40 percent over the share price before the first media reports. That would value Evonik at around 11 billion euros. BASF said Evonik's refusal to negotiate was incomprehensible but noted its willingness to talk. Chief executive Markus Kamieth had called a combination a logical step, saying consolidation in the European chemicals industry had already begun. He pledged no compulsory layoffs until 2032 and said Essen would remain an important site.
A key role falls to the RAG Foundation, which holds about 43 percent of Evonik and uses its income to pay for the legacy costs of Germany's hard-coal mining. Its board of trustees is dominated by politicians, including the state premiers of North Rhine-Westphalia and Saarland, the federal economy and finance ministers and the head of the IG BCE union. Besides the price, concern about jobs in the struggling chemicals industry weighs there. Evonik shares were down about 1 percent at just under 21 euros in the afternoon.