BASF Pursues Three Tracks at Once: Evonik Soundings, Taiwan Chip-Materials Expansion and a Nylon Venture

BASF is running several strategic plays in parallel, and for shareholders the common thread is the gap between intent and execution. Chief executive Markus Kamieth spent weeks laying the groundwork for a possible takeover of smaller Essen-based rival Evonik, according to a report from manager magazin, sounding out key contacts in Germany's Ruhr region well before the company made its informal approach. Around the same time, the group has been signing preliminary agreements in Taiwan and with a Chinese partner in polyamide — none of which yet amounts to a binding commitment.

Sounding out the ground before the bid

The reported contacts suggest BASF's preparation went beyond drafting an offer, though they say nothing about whether the parties approached actually back the plan. That distinction matters: early soundings are a step in the run-up to a takeover attempt, not an endorsement from Evonik and certainly not a guarantee of completion. The offer itself remains unofficial.

For BASF investors, the news value therefore sits in management's method rather than in any outcome. The report describes a long-prepared approach without evidence that it will succeed, and no financial benefit for shareholders can be inferred from the groundwork alone.

Bernstein's buy call is not a verdict on Evonik

Bernstein Research has reiterated its buy rating on BASF with a price target of €61. That positive stance should be kept separate from the takeover chatter — it carries no explicit assessment of the Evonik move. The analysts' position supports a broadly constructive view of the stock but does not answer whether a deal would actually serve BASF. Investors should not read the recommendation as a seal of approval on the transaction plans.

Taiwan: capacity ambitions, not secured supply

Yesterday BASF signed a memorandum of understanding with Taiwan's economics ministry to expand its site in Taoyuan. The plan calls for additional production capacity for materials used in semiconductor structures of 2 nanometres and below, alongside a strengthening of quality analytics and the innovation centre. BASF says the project should broaden local production and customer support and improve supply-chain resilience. The company established Taiwan as the global strategic hub for its electronics-materials business in 2025 and has operated on the island for more than 20 years.

No production volumes, product-specific delivery commitments or commissioning date were disclosed, and customer qualifications and supply terms remain unspecified. Additional supply therefore cannot be treated as immediately secured — the distinction between expansion intent and available capacity is what counts.

Polyamide: cost benefits still under review

On Monday, BASF and Highsun Holding Group agreed to a non-binding review of their European polyamide-6 activities. A 50-50 joint venture is on the table, and the partners could also include worldwide extrusion operations outside North America; the downstream engineering-plastics business is excluded. BASF sees combining complementary plants, technologies and commercial capabilities as a route to better utilisation and lower costs, and the two sides have set up project teams. No final agreement exists yet.

Low water on the Rhine stays on the agenda

Alongside the deal-making, the operational backdrop has not gone away. Federal transport minister Steffen Bilger describes low water levels on the Rhine as still challenging despite cooler, rainier weather, though he says there have been no supply shortages despite restrictions on shipping. Bilger expects low-water phases to become a regular occurrence and points to vessels designed for shallow water and a long-term expansion of the river as countermeasures, with the federal government intending to subsidise conversions. The transport ministers' conference is addressing the issue today and tomorrow.

Taken together, the picture is of strategic plans sitting alongside operating constraints. The early preparation of the Evonik approach makes BASF's method easier to follow, but it is not enough on its own for a firm judgment on whether a takeover would pay off. What matters is keeping preparation, possible implementation and economic result in separate boxes.