BASF has entered exploratory talks to acquire Evonik, only to receive a rejection shortly after — the board believes the offered price fails to reflect the true value of Evonik’s business.
BASF offered €22.15 per share, valuing Evonik’s equity at approximately €10.3 billion. Even with a 22%-29% premium over the pre-announcement share price, the valuation multiple is far below comparable industry transactions.
Both German chemical giants are key upstream suppliers for disposable hygiene products including diapers, sanitary napkins and wet wipes.
BASF focuses on nonwoven binders, functional polymers and personal care raw materials.
Evonik supplies specialty polymers, surfactants and functional additives widely used in nonwovens, absorbent materials and consumer care formulations.
This acquisition story unfolds against a tough downturn across Europe’s chemical sector. High local energy costs, weak global commodity demand and competition from low-cost Asian capacity have squeezed profit margins for years. Evonik has launched its “Evonik Tailor Made” restructuring plan, cutting 3,200 jobs globally and closing production sites. BASF is also facing earnings pressure.
The fate of these two leading chemical players remains uncertain. For hygiene manufacturers worldwide, any consolidation in upstream specialty chemicals will inevitably reshape raw material availability, pricing and supply chain stability.
We keep a close eye on this deal and its potential impact on the nonwoven & hygiene materials industry.