Evonik rejects BASF's $11.7 billion takeover bid, FT reports

• The rejected bid was valued at €10.3 billion ($11.7 billion), representing a significant acquisition attempt in the chemicals sector
• Evonik refused to enter formal negotiations or permit due diligence, indicating the offer was substantially below expectations
• The bid came from BASF, a direct competitor in the chemicals industry, which would have created consolidation among major German chemical manufacturers

Summary: Evonik Rejects BASF's $11.7 Billion Takeover Bid

German specialty chemicals company Evonik has rejected a €10.3 billion ($11.7 billion) takeover offer from BASF, according to a Financial Times report on September 28. The bid was deemed too low to warrant formal negotiations or grant the competitor access to due diligence processes.

Key Details:

• Offer value: €10.3 billion ($11.7 billion)
• Acquirer: BASF, German chemical giant
• Target: Evonik Industries
• Status: Rejected without proceeding to formal talks

Market Implications:

This rejection signals Evonik's confidence in its standalone valuation and suggests the company believes it commands a higher premium. The rebuff also indicates that any successful acquisition would require a significantly improved offer from BASF.

The proposed deal would have represented a major consolidation move in the European chemicals sector, combining two German industry players. BASF, one of the world's largest chemical producers, has been seeking growth opportunities amid challenging market conditions facing the European chemicals industry.

Sector Context:

The chemicals sector in Europe has faced headwinds from high energy costs, weak demand, and competition from Asian producers. Despite these challenges, Evonik's rejection suggests management and shareholders see better value creation through independent operations or potentially from alternative suitors.

The news comes as European industrial companies navigate restructuring pressures, as evidenced by concurrent reports of Thyssenkrupp's steel division pursuing profit improvements through capacity and job cuts while benefiting from trade barriers against Asian steel imports.

Reuters noted it could not immediately verify the FT report independently.