BASF Proposes Takeover of Evonik to Combat Global Competition

BASF has approached Evonik with a non-binding proposal for a voluntary public takeover of all the company's shares. Evonik confirmed the approach on Friday, though the company noted that no formal talks are currently underway.

A successful acquisition would merge two of Germany's largest chemical producers. This consolidation aims to create an entity capable of competing more effectively against rivals in the United States and China as the German chemicals sector faces declining demand and rising energy costs.

The RAG Foundation, which holds a 43% stake in Evonik, is a critical party to any potential agreement. BASF CEO Markus Kamieth previously stated that the business environment was at its most difficult in at least the last 25 years, citing a global shift in industrial power toward Asia.