Germany's largest chemical company BASF is considering acquiring its rival Evonik, a specialty chemicals manufacturer with a market value of more than €8 billion.
According to DPA, cited by Report, Evonik confirmed that BASF had submitted a preliminary offer for a voluntary public tender for all of the company's shares. The parties are currently discussing a potential deal, but have not yet reached a final agreement.
According to Bloomberg, BASF has been working with advisers for several months on the details of a potential transaction. The agency noted that acquiring Evonik would allow BASF to expand its geographic presence and product portfolio, including by strengthening its position in competition with Chinese manufacturers.
Given Evonik's market value, the deal could become one of the largest in BASF's history. The company has so far declined to comment.
Chemical companies are currently facing challenges due to a sharp rise in energy prices amid the conflict in the Middle East. At the same time, some market segments are seeing short-term increases in demand and selling prices due to product shortages.
BASF has been carrying out a major restructuring program and cutting jobs for several years. From January 2024 through the end of June 2026, the group eliminated around 7,000 positions worldwide, primarily at its main site in Ludwigshafen.
At the end of June, BASF completed the sale of a 60% stake in its business producing coatings for conveyor systems and automotive refinishing to US investment firm Carlyle. The remaining 40% of the joint venture Surventis is still owned by BASF, but the group plans to fully exit the asset. In addition, BASF's agricultural chemicals business is planned to be spun off and listed on the stock exchange.
Evonik is also cutting costs despite an improvement in its earnings outlook over the summer. By the end of 2029, the company plans to cut another 3,200 jobs, including 2,150 in Germany. The group has also announced the closure of an unprofitable polyesters plant with annual revenue of around €150 million.
The company is also continuing to reduce the share of standard products in its portfolio and preparing further asset sales. In particular, Evonik aims to separate itself from its standard chemicals business, which is part of its Performance Materials division.