BASF SE has reportedly approached German rival Evonik Industries AG with a merger proposal, according to the Financial Times. BASF has contacted Evonik’s management and its largest shareholder, the RAG Foundation, to discuss a potential combination. The approach comes as Europe’s chemicals sector struggles.
Details of the proposal have not been disclosed. A combination would create a major player in the global chemical industry.
Evonik has a market capitalization of approximately €8.4 billion. Its enterprise value is around €12 billion. Following the report, Evonik shares rose significantly while BASF shares declined. The early-stage talks may not lead to a deal, and investors and industry analysts will be watching for further developments.