Evonik Rejects BASF's €10.3 Billion Takeover Bid
The German specialty chemicals firm deemed BASF's €22.15 per share offer too low for formal negotiations, according to media reports from October 1, 2026.
Evonik Confirms Rejection
Evonik Industries AG has declined a reported €10.3 billion ($11.7 billion) takeover proposal from BASF SE. The German specialty chemicals producer confirmed on October 1, 2026, that it received a non-binding approach for a voluntary public takeover offer for all its shares. However, Evonik stated that no discussions are currently underway regarding the proposal.
The company also indicated it does not plan to comment further on the matter beyond its legal obligations or respond to related inquiries. This decision prevents the creation of what media reports suggested would be the world's largest chemicals company.
Offer Deemed Insufficient
Sources cited by Reuters indicated that BASF's offer stood at €22.15 per Evonik share. Despite initial discussions about a potential acquisition, Evonik found this valuation insufficient. According to the Financial Times, the proposed offer was too low to initiate formal negotiations or to permit BASF to conduct due diligence.
This rejection highlights a valuation gap between the two chemical giants, preventing BASF from advancing its efforts to expand its market presence through this acquisition.
BASF's Strategic Rationale
A BASF company source informed Reuters that Evonik's product portfolio aligns well with BASF's existing operations. The acquisition was expected to generate cost efficiencies through synergies and strengthen BASF's customer-facing business segments. Furthermore, the takeover aimed to enhance BASF's overall company resilience and reduce its reliance on the European market.
These strategic benefits underscore BASF's interest in Evonik as a means to reinforce its global competitive standing and diversify its market exposure.
Global Market Competition and Asia's Supply Chain
This failed acquisition attempt occurs as BASF faces increasing competition for its top global ranking in chemical revenue. The company is at risk of losing this position to China's Sinopec. Last year, BASF's group revenue of €59.7 billion was nearly on par with Sinopec's chemicals division revenue.
For Asia's beauty industry, this dynamic means continued intense competition among global ingredient suppliers. Brands and manufacturers in Asia may see these major chemical producers intensify their focus on innovation and market share within the region, potentially impacting pricing and supply chain stability for cosmetic raw materials.
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