BASF or a merger/acquisition of Evonik!!

【Answer 1】【Polymer Circular Recycling】 reports that, on September 22, European media cited information from M&A advisory platforms Mergermarket and Dealreporter stating that BASF had conducted preliminary discussions this year regarding a potential merger with German specialty chemicals company Evonik. The news drove Evonik’s share price up by as much as 4.8% that day. However, multiple sources indicated that, constrained by financial pressures and ongoing business divestment processes, the deal is unlikely to materialize in the near term. The report notes that five insiders disclosed details of these discussions to the media. It confirms that both companies have initiated related talks; any substantive follow-up actions would proceed exclusively at the executive leadership level. Multiple sources pointed out that the idea of a BASF–Evonik merger is not new—it has been under board-level discussion for many years, and the concept has reportedly been under deliberation for nearly two decades, remaining largely at the conceptual stage. Several insiders candidly acknowledged that the transaction publicly termed a “merger” is, in essence, a BASF acquisition of Evonik. Financial constraints and the planned divestiture of business units are the core factors hindering short-term progress. Sources indicated that BASF currently faces tight liquidity and will not launch such a major acquisition before completing the IPO of its Agricultural Solutions business. BASF has recently appointed Citigroup, Deutsche Bank, Goldman Sachs, and JPMorgan Chase as global coordinators for this IPO, with the listing expected no earlier than mid-2027. Polymer circular recycling—covering plastics, fibers, rubber, and resin-based composites—is a critical global initiative for achieving carbon neutrality and green transformation, and an inevitable trend for industrial development. Building upon the first three editions, the 2026 (4th) Polymer Circularity and Recycling Conference (PCRC 2026) will be held in Ningbo, Zhejiang Province, from December 17–19, 2026. Centered on the theme “Advanced Recycling · High-Value Regeneration · Industrial Collaboration,” the conference focuses on recycling technologies and applications for plastics, fibers, rubber, and resin-based composite materials. It brings together academia, research institutions, and industry to exchange insights on advanced recycling technologies, design of recyclable materials, and practical industrial applications—accelerating technology transfer and upstream-downstream collaboration. The conference will feature three concurrent activities: the Dynamic Polymers and Recyclable Materials Design Forum; the Exhibition of Polymer Circular Recycling Materials and Equipment Technologies; and the Exhibition of Innovative Achievements in Polymer Circular Recycling—further promoting knowledge sharing, cooperation, industrial synergy, and market alignment in the resource-circularity field. Experts and enterprises across the value chain are warmly invited to participate, share insights, and explore collaboration! 01 Organizational Structure Conference Name 2026 (4th) Polymer Circularity and Recycling Conference Polymer Circularity and Recycling Conference (PCRC 2026)

BASF advances its acquisition of Evonik, holding another trump card

【Answer 2】 BASF Advances Its Potential Acquisition of Evonik, Holding Another Trump Card (Evonik Rejects BASF’s First Acquisition Offer) (BASF May Have Considered Acquiring Evonik This Year) (BASF Is Evaluating an Acquisition of Evonik) German chemical giant BASF continues advancing its potential acquisition of Evonik Industries. Evonik’s management recently rejected BASF’s initial offer of €22.15 per share, valuing the company’s entire equity at approximately €10.3 billion. Evonik deemed this price insufficient to serve as a basis for further negotiations. However, this rejection does not signal the end of the deal. According to insiders, BASF was not surprised by Evonik’s response. BASF remains interested in pursuing the acquisition, though it remains uncertain whether—and when—it will submit a revised offer. A higher bid would hinge, among other things, on Evonik’s willingness to enter formal negotiations, enabling both parties to further discuss transaction structure, synergies, and justifications for a higher valuation. The earliest possible completion of the acquisition is 2028 Internally, BASF views this potential transaction as a “long-term, thoroughly prepared initiative,” rather than a sudden, short-term move. Per current internal planning, even if an agreement is ultimately reached, the full transaction would not be completed until at least 2028. BASF has formally confirmed that it is engaged in preliminary discussions with Evonik and its largest shareholder, the RAG Foundation (RAG-Stiftung), regarding a potential acquisition—but it emphasized that the progress and ultimate outcome of these discussions remain open. Evonik likewise confirmed having received BASF’s non-binding, voluntary public offer to acquire all of its shares, though formal negotiations had not yet commenced at that time. If the deal proceeds, it would rank among the most significant consolidations in the German chemical industry in recent years. BASF believes the two companies’ market positions and product portfolios are complementary in certain areas, and a combination could strengthen their global market standing and broaden customer coverage. However, specific synergy values and potential business adjustments have yet to be officially disclosed. The RAG Foundation: A Key Determinant of the Deal’s Future Whether the transaction moves forward hinges significantly on the stance of the RAG Foundation—the largest shareholder of Evonik, holding approximately 44% of its shares—and thus wielding decisive influence over any potential acquisition. One of the Foundation’s core mandates is to use investment returns to fund long-term governance costs associated with Germany’s coal mine closures; accordingly, its investment portfolio must balance stable returns with preservation of long-term asset value. To date, the RAG Foundation has not publicly declared whether it supports BASF’s acquisition. Previously, the Foundation aimed to gradually reduce its stake in Evonik while still retaining a minority holding of 25.1% over the long term—to preserve its influence over the company. This implies that, should BASF seek RAG’s support, the transaction structure may need to be more flexible than a straightforward all-cash acquisition.

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