BASF offers job guarantees to advance Evonik takeover bid

BASF is attempting to advance its takeover bid for Evonik by offering assurances regarding job security and site preservation. According to insiders, BASF is prepared to honor Evonik’s existing commitments, which prohibit operational redundancies in Germany through 2032 and require any workforce reductions to be voluntary. These concessions aim to appease labor representatives, unions like IG BCE, and politicians in North Rhine-Westphalia who have expressed skepticism toward the sale.

Despite these signals, the RAG-Stiftung, which holds a 44 percent stake in Evonik, has not yet made a definitive commitment to the proposal. Following a meeting of its board of trustees in Essen, the foundation indicated it would remain neutral for the time being, suggesting that BASF and Evonik must first conduct bilateral negotiations.

Evonik’s management has previously rejected an initial offer of 22.15 euros per share, which valued the company at approximately 14 billion euros, and is currently seeking a more favorable proposal.