BASF Prepares Higher Evonik Bid After €10.3 Billion Offer Rejected

BASF Pursues Evonik Acquisition

BASF plans to increase its offer for German competitor Evonik. This follows Evonik's rejection of a reported €10.3 billion ($11.6 billion as of September 2026) bid, which valued shares at €22.15 each. Evonik confirmed last month that it received a non-binding approach from BASF for a public takeover but stated no active discussions were underway.

However, sources close to BASF indicated to Reuters last month that the initial rejection was unlikely to be the final outcome. BASF has declined to comment on the matter.

Strategic Rationale and Competitive Landscape

A BASF company source told Reuters last month that Evonik's product portfolio aligns well with BASF's operations, potentially creating cost efficiencies through synergies. This acquisition would also enhance BASF's direct customer engagement, strengthen its overall business resilience, and decrease its reliance on the European market, according to Reuters sources.

BASF faces competition for its top global ranking in chemical revenue. Last year, BASF's group revenue of €59.7 billion was nearly equivalent to the chemicals division revenue of Chinese giant Sinopec. The combined revenues of BASF and Evonik reached €74 billion last year.

Regulatory and State Scrutiny

Any merger between the two German chemical companies would undergo regulatory review. However, the Financial Times reported last month that Brussels has expressed a growing interest in supporting the creation of larger, more competitive European industrial leaders.

Separately, earlier this week, the German state of North Rhine-Westphalia, where Evonik is headquartered, voiced concerns. The state emphasized that a takeover must not jeopardize jobs or Evonik's independent development.

Reuters reported that state premier Hendrik Wuest, who sits on the board of trustees of RAG Foundation (Evonik's largest shareholder), could exert significant influence.

Implications for Asia's Beauty Supply Chain

A potential BASF-Evonik merger could reshape the global specialty chemicals market, impacting ingredient sourcing for Asian beauty formulators. If the acquisition proceeds, the combined entity would command a larger share of the market for cosmetic raw materials, potentially influencing pricing and supply stability for Asian manufacturers.

Asian beauty brands and OEM/ODM partners should monitor the outcome of this bid, particularly regarding the availability and cost of key ingredients. Any consolidation could lead to revised supply contracts or new product development opportunities for Asian companies seeking alternative or specialized ingredients by early 2027.