BASF or a merger/acquisition of Evonik!!

【Answer 1】 According to 【Polymer Circular Recycling】, on September 22, European media reported—citing merger and acquisition information providers Mergermarket and Dealreporter—that BASF had conducted preliminary discussions this year regarding a potential merger with German specialty chemicals company Evonik Industries. 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 transaction is unlikely to materialize in the near term. The report states that five insiders disclosed details of the negotiation progress to the media. It is confirmed that both companies have initiated related discussions; any substantive follow-up actions would proceed exclusively at the executive leadership level. Multiple insiders noted that the idea of a BASF–Evonik merger is not new—it has been under board-level discussion for many years, with conceptual deliberations dating back nearly two decades, yet remaining at the ideation stage. Several insiders candidly acknowledged that this deal, publicly termed a “merger,” is in essence a BASF acquisition of Evonik. Financial constraints and ongoing business divestments constitute the core factors impeding short-term advancement of the transaction. Insiders stated 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 to occur as early as mid-2027. Polymer circular recycling—including plastics, fibers, rubber, and resin-based composites—is a critical initiative globally 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—facilitating technology transfer and upstream-downstream collaboration. The conference will host three concurrent events: 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 sector. Experts and enterprises across the value chain are warmly invited to participate, exchange insights, and explore collaboration! 01 Organizational Structure Conference Name 2026 (4th) Polymer Circularity and Recycling Conference Polymer Circularity and Recycling Conference (PCRC 2026)

China Zhongzhi Weiye Information | Major Concession by BASF in Evonik Acquisition: Commitment to Job Security

【Answer 2】 On October 12, it was reported that BASF stated that, should its acquisition of specialty chemicals company Evonik Industries be completed, it would uphold existing employment and production-site security provisions for Evonik in Germany. Two insiders close to BASF revealed that the Ludwigshafen-headquartered chemical giant is willing to incorporate this commitment into any potential acquisition agreement—including a clause prohibiting compulsory layoffs until 2032. Political leaders and labor representatives from North Rhine-Westphalia had previously voiced persistent concerns that the acquisition could trigger job cuts and operational adjustments at Evonik’s German production sites; BASF’s pledge aims to address these concerns. Under Evonik’s current collective bargaining agreement, compulsory layoffs for operational reasons are prohibited across Germany until the end of 2032; workforce optimization may only proceed via voluntary resignations, early retirement, or severance payments. Insiders indicated that BASF recognizes the binding nature of this provision and will not weaken these employment protection commitments post-acquisition. When Reuters sought confirmation from BASF regarding this pledge, the company declined to comment. This announcement marks the latest development in merger talks between Germany’s two largest chemical conglomerates. As early as September, Evonik confirmed that BASF had proactively approached it to explore a potential acquisition—but formal negotiations had not yet commenced. Subsequent reports indicated that Evonik rejected BASF’s initial offer due to valuation concerns—the proposed transaction valued Evonik at approximately €10.3 billion, or €22.15 per share. On October 9, two insiders close to BASF stated that, should negotiations resume, BASF may raise its offer; however, no revised formal bid has yet been issued. Job security has now become a central point of negotiation in this acquisition deal. Germany’s chemical workers’ union IG BCE is demanding long-term job security for Evonik employees and explicit investment commitments for Evonik’s German production sites.

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