BASF confirms interest in Evonik talks

Markus Kamieth, chairman of the management board, has stated in a video on the company website that BASF is ready to enter into talks with Evonik Industries over a proposed combination. BASF had previously confirmed that it had held exploratory talks with Evonik and its largest shareholder, RAG-Stiftung. Reports say that Evonik rejected an initial bid of €10.3 billion.

BASF and Evonik, Kamieth said, are strong, global players in speciality chemicals. Being part of BASF would enable Evonik to source certain raw materials from it “more cost-effectively, more directly and more reliably”. He added that BASF would, among other things:

• Take over Evonik’s existing site agreements, with no compulsory redundancies 
• Examine what joint activities could be managed from Essen, Evonik’s headquarters
• Continue operating the existing chemical parks at Marl and Wesseling, contrary to Evonik’s plan to sell the management company

The chemical industry is, Kamieth said, “consolidating, one way or another. The question is: Do we shape this ourselves? As German companies, with our values, our model of co-determination and our social partnership? Or do we wait until European chemical companies are overtaken in global competition or increasingly acquired by foreign investors?”