BASF pledges to protect Evonik jobs and German sites in any takeover - report

BASF pledges to safeguard Evonik's German operations and jobs in the event of a potential takeover, according to Reuters. Two sources close to BASF revealed the commitments, which aim to allay concerns among politicians and labor representatives in North Rhine-Westphalia. BASF has agreed to include these assurances in any agreement with Evonik, the report cites.

Evonik currently has a safeguard until 2032 that prevents compulsory layoffs in Germany, and any job cuts would have to be voluntary with severance pay. BASF has expressed its commitment to these guarantees and would not renounce them. Evonik first announced in September that BASF had approached them about a potential acquisition, with Evonik rejecting a €10.3 billion bid of €22.15 per share as too low.

BASF may increase its offer if negotiations commence. The IG BCE trade union has urged the preservation of Evonik employees' prospects and investment commitments for the sites. North Rhine-Westphalia's state parliament is scheduled to debate the issue on Wednesday, after the state confirmed last week that Evonik and its independent development should not face job jeopardy through a takeover.