BASF and Evonik face potential merger amid calls for state intervention

BASF and Evonik are involved in discussions regarding a potential merger or acquisition, a move that could lead to significant consolidation within the German chemical industry. BASF CEO Markus Kamieth has described a potential combination with a major player in specialty chemicals as an “interesting combination,” signaling a strategy to strengthen international competitiveness amid industry-wide challenges.

In response to these developments, the SPD political party in North Rhine-Westphalia has proposed that the state government consider becoming a shareholder in Evonik. The goal is to secure Evonik’s independence and protect jobs, locations, and investments in the Ruhr region. The SPD suggests that the state could partner with the RAG-Stiftung—which currently holds approximately 43 percent of Evonik shares—to establish a controlling interest of more than 50 percent.

Both companies are currently undergoing deep transformations as the German chemical sector struggles with high energy and personnel costs, alongside weakened demand in key consumer industries.