Evonik Keeps Its Options Open as Suitor Waits in the Wings

Evonik's shares ended Friday's session at €21.32, within touching distance of their 52-week high of €21.84 — a level that reflects just how much takeover speculation has done for the stock, which has climbed 60% since the start of the year. Yet the specialty chemicals group from Essen is not sitting still while BASF circles. It is pressing ahead with a dual agenda: slimming down its portfolio and building out circular-economy technology.

On the divestment front, the second round of bidding for the C4 unit, Oxeno, is under way, with both financial investors and strategic buyers in the running. Binding offers are expected in November. The sale forms part of a broader effort to shed peripheral activities — a process unfolding against the backdrop of persistent M&A chatter.

That chatter centres on Ludwigshafen, where BASF is weighing a richer offer for its smaller rival. Evonik's management already turned down an initial approach of €22.15 per share as too low and said no talks were currently taking place. According to a person familiar with the matter speaking to dpa-AFX, BASF is keeping a higher bid on the table — but only on condition that it first gets a look inside Evonik's books. Direct discussions between the two sides were not happening at that point, the report said.

Guarantees Offered, Resistance Mounts

In an effort to head off objections early, BASF signalled roughly a week ago, according to Reuters, that it would be prepared to commit contractually to site and employment guarantees in the event of a takeover. That would preserve existing arrangements ruling out compulsory redundancies through 2032.

The political reception in North Rhine-Westphalia has been frosty regardless. Economy Minister Mona Neubaur told the Düsseldorf state parliament that the regional government opposes a purchase by the rival, following a debate requested by the SPD. The state, she said, wants to protect both jobs and Evonik's presence in NRW.

Organised labour has weighed in too. The IG BCE union wrote to the works councils of both companies demanding clarity on the consequences for staff and directing questions to the major shareholder, RAG-Stiftung. The foundation's board of trustees was briefed by its executive board on 9 October about BASF's interest but stopped short of endorsing the offer.

Adding to the unease were remarks by IG BCE chief Michael Vassiliadis alleging financing problems. Evonik rejected the claims outright, pointing to improved credit ratings as evidence of financial stability, according to Handelsblatt. Shareholder representatives, for their part, expect the pressure to persist: DSW president Ulrich Hocker said he was convinced BASF would pursue its move further.

A Recycling Foothold in Japan

Amid the takeover manoeuvring, Evonik is quietly expanding its operations. On 13 October — a Tuesday — the company launched a polyurethane recycling initiative in Japan alongside partners Toyotsu Chemiplas and Sanyo Chemical. The joint project aims to develop a recycling model for polyurethane foam, recovering polyols and amines from used foams and industrial production waste for use in new applications.

It is a small but telling piece of the group's strategy: while the question of who ultimately owns Evonik remains unresolved, the company is determined to keep setting its own course.