BASF, the world’s largest chemical producer, has submitted a takeover proposal for German rival Evonik Industries. The move could reshape Europe’s chemical sector.
BASF made the offer to Evonik’s management and its largest shareholder, the RAG-Stiftung foundation. RAG-Stiftung holds a 44% stake in Evonik.
Evonik has a market capitalization of around €8.4 billion. Its enterprise value is approximately €12 billion.
European chemical companies face high energy costs and slowing global demand. These pressures have prompted calls for consolidation to create more competitive global players.
The proposal sparked an immediate market reaction in Frankfurt. Evonik shares rose more than 7%, while BASF shares fell nearly 2%.
The potential deal is likely to face significant antitrust scrutiny. However, sentiment is growing in the EU in favor of mergers that could create stronger European industrial champions.