RAG-Stiftung Joins Evonik Fray as BASF Weighs Sweeter Bid

BASF's ambition to acquire Evonik has run into resistance on multiple fronts, with the RAG-Stiftung's board of trustees voicing reservations after being briefed on the interest, according to media reports. The Ludwigshafen-based group is still exploring the groundwork for raising its offer, but the path is anything but clear.

The chemical giant's first approach — valuing the Essen-based specialty chemicals maker at 22.15 euros per share — was rejected by the target as insufficient. To discuss a higher bid, BASF wants access to Evonik's books first. Evonik itself stressed after news of the overtures emerged that no talks with the Ludwigshafen group are being held. No formal, binding takeover offer has been submitted, and neither company has officially confirmed a revised bid or binding transaction steps.

What BASF has already put on the table are concessions on the takeover's social side. The group has signaled willingness to underpin existing German site and employment guarantees in contract form. At Evonik, a ban on compulsory redundancies at domestic sites runs until 2032.

Investors Cool on Synergies

Professional investors are proving just as skeptical. Analyst James Hooper reaffirmed an "Outperform" rating on BASF with a price target of 61 euros, but reported that at investor meetings in North America, reactions to the potential synergy gains from a combination were almost uniformly negative. Bernstein Research had already kept its "Outperform" rating and 61-euro target on the stock on Wednesday following an investor meeting.

The share price has held up regardless. BASF closed Friday's session at 52.96 euros, up 19 percent since the start of the year and just 3.8 percent below its 52-week high.

October 28 Looms Large

Fresh fundamental direction should arrive shortly. On October 28, BASF publishes its full quarterly financial report for the third quarter of 2026. Beyond the detailed figures, market participants are likely to use the accompanying conference call to press for clarity on capital allocation and the next move in the Evonik saga.

Alongside the takeover question, the group continues to execute its capital measures: as part of the ongoing share buyback, a total of 6,046,289 own shares had been repurchased by October 9.