BASF Promises No Forced Layoffs Through 2032 in €10.3 Billion Evonik Takeover Bid
German chemicals giant BASF has pledged to honor Evonik’s existing job-preservation agreements in full if its takeover bid succeeds, aiming to ease mounting local anxiety across Germany’s industrial heartland. CEO Markus Kameith announced the commitment in a video message published on the company’s website, setting a firm timeline that rules out forced layoffs through 2032 while preserving established collective bargaining traditions.
The proposed acquisition values Evonik at €10.3 billion, equating to €22.15 per share, though target leadership initially rejected the approach as too low. Kameith countered that resistance could trigger harsher takeover offers from foreign investors as the wider sector undergoes heavy consolidation. To anchor the deal locally, BASF promised that at least one member of the combined management board will operate out of Essen in western Germany, maintaining the state of North Rhine-Westphalia as a vital corporate base.
Kameith pushes consolidation to counter international competition
Kameith framed the acquisition attempt as a necessary defensive and offensive maneuver against surging competitors across Asia and the Middle East. He warned that European chemical firms risk losing ground on global markets or falling entirely to foreign capital if domestic players fail to drive consolidation themselves. The proposed transaction is pitched as a unified German response to escalating international market pressures.
Meanwhile, target company Evonik is actively pursuing independent strategic moves, having enlisted investment banks Perella Weinberg and JPMorgan to evaluate potential acquisition targets including U.S.-based Ashland. Ashland carries a market capitalization of approximately $3.3 billion on the New York Stock Exchange and has drawn interest from private equity funds such as Advent, Apollo, and Carlyle. Industry analysts note that successfully absorbing Ashland would increase Evonik’s overall market scale, complicating BASF’s takeover ambitions.
Evonik is currently executing an extensive restructuring program independent of the merger discussions, targeting thousands of job cuts by 2029. Kameith acknowledged these regional workforce anxieties, drawing on his personal background as the son of a coal miner from Dinslaken to address the Ruhr region’s concerns directly. Investors now monitor whether Evonik will press forward with its Ashland acquisition strategy and whether BASF will revise its per-share offer upward as negotiations evolve.
Frequently Asked Questions About the Proposed Takeover
What is the exact financial value of the BASF takeover bid for Evonik?
BASF proposed acquiring Evonik for €10.3 billion, which amounts to €22.15 per share. Evonik initially rejected this proposal, deeming the valuation too low.
BASF’s chief executive officer promised to honor Evonik Industries’s existing job guarantees through 2032, as the chemicals company stepped up lobbying efforts for a €10.3 billion ($11.5 billion) takeover of its rival https://t.co/0npZVStEpC
How long will the proposed employment guarantees last for workers?
CEO Markus Kameith stated in a video message that the company will guarantee no forced layoffs through 2032 while preserving existing collective bargaining agreements and labor-management partnerships.
Keep reading