Evonik rejects BASF's €10.3B takeover bid as too low

BASF: BASF is one of the world's largest chemicals makers with operations spanning engineering plastics, super absorbent polymers, vitamins, and industrial chemicals. The company made an unsolicited bid for Evonik at approximately €22.15 per share, citing potential synergies, cost benefits, strengthened customer-facing businesses, and reduced European market dependency. BASF stated it is taking a disciplined approach and would not comment further on price without Evonik's involvement. Evonik: Evonik Industries is a German specialty chemicals manufacturer focused on high-tech plastics, feed additives, coatings ingredients, and household products. In this news, the company rejected a €10.3 billion takeover bid from BASF, deeming the offer too low according to sources close to the negotiations. Evonik's largest shareholder, the RAG foundation, also declined to comment on the approach. Sinopec: Sinopec is a major Chinese energy and chemicals company whose chemicals division has been growing rapidly. BASF faces the risk of losing its top global ranking by chemicals revenue to Sinopec, as their revenues were nearly identical last year. The potential Evonik acquisition was partly aimed at boosting BASF's resilience amid this competitive pressure. Market Reaction: Evonik shares rose following news of the rejected bid while BASF shares remained largely stable after an earlier decline. Takeover Rationale: BASF viewed Evonik's portfolio as well-suited for integration, offering possible cost benefits through synergies and a boost to company resilience.