Germany’s Evonik rejects BASF’s $11.7 billion bid, sources say

German chemicals company Evonik has rejected a €10.3 billion takeover bid from BASF, according to sources familiar with the negotiations. The German manufacturer considers the offer to be too low. BASF, a leading chemicals producer, had proposed a price of approximately €22.15 per Evonik share. Following news of the bid, Evonik shares rose by 1.6% to €19.8 per share.

In contrast, BASF's shares remained relatively unchanged, having dropped by 3.6% on the previous Friday due to the exploratory talks with Evonik. BASF emphasized that they were adopting a disciplined approach and would not disclose any further details about the potential price, as any discussions regarding synergies could only be confirmed if Evonik were to join the deal.

The final decision on the matter awaits confirmation from Evonik and its main shareholder, the RAG foundation. Evonik's portfolio encompasses high-tech plastics, feed additives, and ingredients used in coatings and household products. BASF, on the other hand, specializes in engineering plastics, super absorbent polymers, vitamins, and industrial chemicals.

BASF's global revenue stands at €59.7 billion, closely trailing that of China's Sinopec, which operates in the chemicals sector.