Latest: BASF has tabled an increased offer of about 24 euros per share for Evonik, valuing the company at more than 11 billion euros, Bloomberg reported on Friday, citing people familiar with the matter, and a person close to BASF confirmed the 24 euro figure and the tabling to Reuters. The bid is up from the advances of 22.15 euros a share, worth about 10.3 billion euros, that Evonik considered unconvincing. Evonik shares rose to 21.50 euros in response, a gain of just under 4 percent on the day, according to dpa-AFX. Evonik declined to comment, and neither company has published the bid, so the terms rest on the two agencies’ sourcing. The first version of this update, published earlier this morning, said the talks were advanced, that RAG-Stiftung was yet to be convinced and that the shares rose as much as 5.9 percent; none of those details was verified, and they have been removed.
BASF chief executive Markus Kamieth said on Thursday that the company would honour all existing agreements to preserve sites and jobs made by Evonik in the event of an acquisition, and that compulsory redundancies would remain off the table until 2032. The commitment, reported by Reuters and Bloomberg, is BASF’s attempt to defuse the political and union opposition that has gathered around its pursuit of the Essen based specialty chemicals maker.
The price dispute remains open. Evonik earlier rejected an approach of 10.3 billion euros, or 22.15 euros per share, as too low, and people close to BASF have said it could raise its offer if talks between the companies take place. The trade union IG BCE has called for future prospects for Evonik employees and investment commitments for its sites, and the state of North Rhine-Westphalia, where Evonik is based, has said jobs and the company’s independent development must not be jeopardised.
The anchor shareholder complicates any path to control. RAG-Stiftung holds about 43.8 percent of Evonik, and the state’s premier sits on a key governing body of the foundation, so a transaction needs foundation governance approval as well as a price Evonik’s board will recommend.
BASF confirmed in September that it was holding exploratory discussions with RAG-Stiftung and Evonik. Thursday’s pledge does not change the valuation gap; it changes the negotiating terrain, putting written site and employment commitments on the table before formal due diligence, with Evonik’s third quarter report on November 3 now a reference point for its standalone value.