BASF lifts Evonik bid above €11 billion

BASF SE (BAS.DE) has raised its takeover offer for Evonik Industries AG to more than €11 billion, in a move that intensifies consolidation efforts in the German chemicals sector. The latest proposal values Evonik at around €24 per share and builds on an earlier approach that had put the company’s equity value at roughly €10.3 billion. The higher headline value signals a renewed attempt by BASF to secure control of the Essen-based specialty chemicals maker after its initial proposal.

The revised offer is structured to extend beyond price alone, with assurances that existing jobs will be preserved and that key production sites will be maintained. BASF has pledged to honor Evonik’s current job guarantees through 2032, seeking to address potential concerns among employees and stakeholders about employment and industrial footprints.

Evonik’s shares jumped as much as 5.2% on Friday, a move strong enough to trigger a temporary volatility halt. After trading resumed, Evonik shares were changing hands at €20.86 at 1:11 p.m. in Frankfurt, implying a market capitalization of about €9.7 billion, still below the level indicated by the new offer.

The updated bid of roughly €24 per share represents a premium of about 38% over Evonik’s closing price prior to reports in September that BASF had shown interest.

BASF’s proposal combines a higher valuation with explicit commitments on industrial and employment stability at Evonik. The guarantees on jobs and production sites are intended to preserve Evonik’s operational base and provide visibility on workforce protections for several years. These elements form a key part of the revised bid alongside the increased per-share consideration.

Despite the improved terms, discussions around a possible transaction remain in progress, and there is no guarantee that a final agreement will be reached. Evonik had previously rejected BASF’s initial €10.3 billion bid as too low, and stakeholders are now weighing the enhanced price and employment safeguards against strategic and regulatory considerations. The outcome will determine whether BASF’s move to lift its offer above €11 billion will be sufficient to secure approval for one of the sector’s notable potential combinations.