BASF has increased its proposed takeover price for Evonik Industries to €24 per share, valuing the German specialty-chemicals producer at approximately €11.18 billion, according to people familiar with the negotiations.
The revised proposal increases the price from roughly €22.15 per share.
Evonik rejected an earlier €10.3 billion approach in September as too low. Evonik and its largest shareholder, the RAG Foundation, have declined to comment on the latest proposal.
BASF had already publicly confirmed in September that it was exploring a possible acquisition while stressing that the outcome remained open.
The higher offer adds another dimension to consolidation pressures facing Europe’s chemical industry.
Manufacturers have been contending with expensive energy, weak industrial demand and increasing competition from lower-cost producers abroad.
Evonik operates across specialty chemicals including high-performance plastics, feed additives and ingredients used in coatings and consumer products.
The situation is complicated by Evonik’s own acquisition ambitions.
Evonik has been exploring a potential purchase of U.S. specialty-chemicals company Ashland, currently valued at roughly $3.3 billion. BASF reportedly views such a transaction as too risky.
Employment has also become an important element of the negotiations.
BASF has said it would honor existing Evonik job-preservation agreements if an acquisition proceeds. Political officials in North Rhine-Westphalia, where Evonik is based, have emphasized protecting jobs and industrial sites.
Evonik shares closed Friday 2.7% higher at €21.26, still below BASF’s reported €24 proposal, while BASF gained 0.15%.
That gap indicates investors are not treating completion at the reported offer price as certain.
The next developments to watch are Evonik’s response, the position of the RAG Foundation, whether BASF formally improves its terms and whether Evonik advances its separate interest in Ashland.
