BASF confirms approach to acquire German chemicals group Evonik
Evonik has confirmed that BASF approached it about a possible voluntary takeover of all its shares, although the companies are not currently in talks. Any successful acquisition would require approval from German and European Union competition authorities.
German specialty chemicals group Evonik has confirmed that rival BASF approached it about a possible voluntary takeover offer for all of its shares. Evonik said talks were not currently taking place. The confirmation followed reports by Dealreporter and the Financial Times, according to DW.
BASF is one of Germany’s largest industrial companies and is listed on the DAX. Evonik is listed on the MDAX, which comprises companies ranked below the 40 largest firms on the DAX. Evonik is predominantly owned by the RAF Foundation.
The Essen-based company is Germany’s second-largest chemicals group after BASF and is one of the world’s largest specialty chemicals producers. A successful acquisition would require approval from German and European Union competition authorities. The supplied material does not provide a proposed price, financing arrangements, timetable or details of any formal offer.
The approach could combine two major German chemicals businesses, but Evonik’s statement indicates that no active negotiations were under way at the time of the report. Neither company’s broader strategic rationale was supplied. Evonik is also a longstanding sponsor of football club Borussia Dortmund.
The source material does not indicate whether a takeover would affect that relationship or the company’s operations, employees and sites. The confirmed development is therefore limited to BASF’s approach and Evonik’s statement that discussions were not taking place. Further decisions would depend on the companies and competition authorities.
This independently written report is based on information supplied by the named publisher. Vertrix News has not independently verified the source report.