Evonik Balances Union Pushback and a Wary Suitor as Oxeno Deadline Nears

Evonik finds itself fighting on an unfamiliar number of fronts at once. Within weeks, Germany's specialty chemicals maker has had to swat away a union chief's claims about its balance sheet, manage a takeover approach it considers too cheap, and keep its divestment machine running — all while its share price hovers just shy of a 52-week high.

The union salvo came from Michael Vassiliadis, head of the IG BCE, who publicly linked the Essen-based group to problematic financing issues. Evonik rejected the characterization outright, pointing to improved credit ratings from Moody's and S&P, both carrying a stable outlook, as evidence of financial strength. The exchange lands in already choppy waters: employee representatives have viewed changes to the ownership structure with suspicion for some time. In an internal letter dated 7 October, Vassiliadis and Alexander Bercht appealed to the works councils of both BASF and Evonik, questioning a full sale of Evonik to BASF in principle.

A Rejected Bid and a Conditional Door

The backdrop is BASF's approach. Roughly three weeks ago, Evonik turned down an initial offer of EUR 22.15 per share as too low. According to dpa-AFX, citing a person familiar with the transaction, BASF is generally open to discussing a higher price but has tied that step to a prior look inside Evonik's books. Reuters reported that, according to the company, no talks with BASF are currently taking place — and no new binding offer has materialized.

Media reports also indicated BASF signaled willingness to take over existing German site and employment guarantees, which rule out compulsory redundancies in Germany through 2032. Even so, political resistance is building: the North Rhine-Westphalia state government came out against a BASF takeover of Evonik after the matter was debated in the state parliament.

The Foundation Stays Silent

At the RAG Foundation, the major shareholder, the supervisory board was briefed by the foundation's executive board on 9 October about BASF's interest. No decision on a sale was taken. That silence leaves the process without a clear gatekeeper — a fact that matters as the calendar tightens.

Two dates now loom. Final bids for Oxeno, Evonik's C4 unit, are expected in November, with both financial investors and strategic buyers anticipated to participate. Just days earlier, on 3 November 2026, the group publishes its quarterly statement for the third quarter of 2026, offering fresh insight into operating performance. The Oxeno sale sits at the heart of Evonik's push to shed peripheral businesses.

Recycling Bet in Japan

While the ownership question simmers, the operating side keeps moving. On Tuesday, Evonik launched an initiative in Japan with partners Toyotsu Chemiplas and Sanyo Chemical. The consortium is examining a process for the chemical recycling of polyurethane foam, converting used foams and production residues into reusable polyols and amines. Evonik contributes a hydrolysis-based chemical method to the effort.

Analysts, for their part, are watching with restraint. Berenberg upgraded the stock from "Sell" to "Hold" on 5 October with a price target of EUR 20.00, while Parmantier & Cie. reaffirmed its "Hold" rating on 6 October with a six-month target of EUR 20.50.

The equity closed Friday's session at EUR 21.32, just 2.4 percent below its 52-week high of EUR 21.84. Since the start of the year, the stock has climbed 60 percent — a run that leaves investors weighing the bird in hand against a richer bid that still hinges on access to the books.