Evonik's €10.3 Billion Standoff: Labor Demands a Solo Blueprint as Pharma Wins Offset Takeover Noise

IGBCE urges a credible standalone plan for Evonik after management rejected BASF's €10.3 billion approach; shares closed 1.0% higher at €21.06.

Evonik's workforce has thrown its weight behind independence, just as the specialty chemicals maker notches a fresh research accolade and keeps its shares pinned near a 52-week peak. The Essen-based group finds itself at a strategic crossroads, with a rejected €10.3 billion approach from BASF still hanging over the boardroom and a powerful union bloc now demanding a credible standalone plan.

In a three-page letter addressed to works councils at both companies, IGBCE chief Michael Vassiliadis and Alexander Bercht, Evonik's deputy supervisory board chairman, urged restraint. Any transaction, they warned, must not be rushed through. Bigger is not automatically better, the labor representatives stressed, according to reports from dpa and Handelsblatt. They want management to commit to a binding future blueprint built on the company's own resources — arguing that past cost-cutting drives delivered little beyond headcount reductions. Future measures, they insist, must offer dependable prospects for sites and employees.

A Bid Rejected, a Courtship Left Open

BASF's interest became public roughly a week ago. The Ludwigshafen-based rival reportedly offered around €10.3 billion, equivalent to €22.15 per share and a premium of roughly 23%. Evonik's management turned the all-share proposal down as inadequate. No direct talks are currently underway, and BASF has described both the course and the outcome of the exploratory discussions as open.

The stance of employee representatives carries considerable weight in what happens next. Vassiliadis speaks for labor not only at Evonik but also sits on BASF's supervisory board. The IGBCE has attached unambiguous conditions to any conceivable deal, cautioning that without a comprehensive industrial concept, a takeover would mainly chase synergies through job cuts.

Anchor Shareholder and Politicians Circle the Table

A pivotal role belongs to the RAG Foundation, Evonik's anchor investor. The foundation holds 43% of the company and channels dividend payouts to fund the perpetual liabilities left behind by German hard-coal mining. Vassiliadis also sits on the foundation's board of trustees, which convened a special meeting today. No preliminary decision on a sale is on that agenda.

Politicians are weighing in as well. The SPD in North Rhine-Westphalia floated the idea of the state taking a stake in Evonik, though no such resolution has been passed. For investors, the public interventions underscore how tangled the environment around the specialty chemicals group has become. Management, meanwhile, is pressing ahead with a far-reaching restructuring aimed at strengthening earnings under its own steam.

Pharma Pipeline and a Prize in Digital Transformation

Operationally, Evonik is sharpening its focus on higher-margin specialty chemicals with a pharmaceutical bent. The company is developing a new, biodegradable polymer platform for its EUDRAGIT functional excipient brand, used in the oral delivery of medicines. Selected partners already have access to initial laboratory quantities for joint development projects.

Those efforts are being reinforced by advances in research automation. On Wednesday, Evonik received a CPHI Pharma Awards 2026 honor for developing automated laboratory processes — so-called Self Driving Labs — in the digital transformation category.

Market Reaction and What Comes Next

Trading has been underpinned chiefly by the strategic options surrounding a possible consolidation. On Thursday, Evonik stock closed 1.0% higher at €21.06, leaving the paper just 0.9% below its 52-week high. That same €21.06 close values the Essen group at €9.74 billion.

The capital markets have been recalibrating too. Private bank Berenberg upgraded Evonik from "Sell" to "Hold" on Monday and lifted its price target to €20, with analyst Sebastian Bray pointing to takeover interest as support for the share price. Research house Parmantier & Cie. followed on Tuesday with a "Hold" rating and a €20.50 target.

Attention now turns to the company's next mandatory appointment. Evonik plans to publish third-quarter 2026 results on November 3. The interim report should reveal how the operating earnings power of its core divisions has developed over the course of the year. Whether BASF returns with a sweeter offer after its first rebuff, or Evonik charts its own course, will shape the story from here.