Evonik Maps Out a Busy November as BASF Standoff Leaves the Ball in Its Court

Evonik investors have plenty to chew on beyond the fate of BASF's courtship. Binding bids for the specialty chemicals maker's C4 unit, Oxeno, are expected in November, with the company reportedly running a second round of talks with financial investors and strategic buyers. That divestment clock is ticking in the background while the takeover drama plays out in Düsseldorf and Essen.

On the takeover front, the two sides remain at arm's length. BASF confirmed exploratory talks in September, and Evonik rejected an initial offer of 22.15 euros per share as too low. According to dpa-AFX, BASF indicated on Wednesday it would consider sweetening the bid — but only on the condition that Evonik first opens its books for detailed due diligence. No fresh binding offer has surfaced, and neither side has announced a resumption of talks.

Labor Guarantees on the Table

To ease concerns about the workforce, BASF has already signaled flexibility. Reuters reported on October 12, citing two people close to the company, that the Ludwigshafen-based group would be prepared to honor Evonik's existing site and employment guarantees in the event of a takeover agreement. Those guarantees are no small matter: job cuts for operational reasons are contractually ruled out in Germany through 2032, making workforce protection a central plank of any deal.

Not everyone is reassured. IG BCE officials Michael Vassiliadis and Alexander Bercht questioned a full sale to BASF in a letter to works councils, warning against hasty moves and pressing for Evonik's independence and the protection of existing structures. Vassiliadis also raised questions about the group's financing, which Evonik's management rejected, pointing to improved credit ratings, according to Handelsblatt.

Politics and a Cautious Anchor Shareholder

Resistance is building outside the factory gates as well. On Wednesday, North Rhine-Westphalia's economy minister, Mona Neubaur, told the state parliament that her government opposes a BASF takeover of Evonik. Meanwhile, anchor shareholder RAG-Stiftung is keeping its cards close: Handelsblatt reported that the foundation's board discussed the Ludwigshafen interest but stopped short of a clear commitment, deferring instead to how talks between the two companies unfold.

Growth Projects Roll On Regardless

Evonik is not waiting for the outcome. Construction has begun on expanded biotechnology capacity at its Slovenská ?up?a site in Slovakia, an investment the company pegged at around 80 million euros, aimed partly at strengthening contract manufacturing of pharmaceutical active ingredients. In Japan, Evonik launched a chemical recycling initiative with Toyotsu Chemiplas and Sanyo Chemical on Tuesday, processing polyurethane foam to recover polyols and amines for new polyurethane products and to test a corresponding business model.

Shares Pause Just Below Their Peak

The market has priced in plenty of takeover hope. Evonik stock closed Friday at 21.32 euros, about 2.4 percent below its 52-week high of 21.84 euros, and up 60 percent since the start of the year. What happens next hinges on whether talks with BASF stay blocked over book access — and how the Oxeno sale unfolds. Concrete fundamental news arrives on November 3, when Evonik reports third-quarter results.