Evonik Industries AG has rejected a €10.3 billion takeover proposal from larger German peer BASF SE, according to reporting by the Financial Times. Ludwigshafen-based BASF made an initial proposal of approximately €22.15 per share, but Evonik rebuffed the offer on the grounds that the valuation was insufficient to merit formal negotiations or grant due diligence access. The proposed price represented a nearly 29% premium to Evonik's stock prior to public speculation regarding takeover interest, assigning the target an enterprise value of approximately €14.2 billion. The refusal is expected to place heightened scrutiny on Evonik management and its primary shareholder, the RAG-Stiftung foundation, which holds a 44% stake in Evonik to fund former coal mining obligations. BASF reiterated its strategic rationale in a statement on Monday, saying an acquisition would strengthen its core portfolio, while its own investors drove the company's shares down nearly 4% late last week amid concerns over execution risks and the financial burden of integrating a complex peer.
BASF SEBASF's €10.3bn takeover bid for Evonik was rejected, and its own shares fell ~4% on execution-risk and integration-cost concerns.
Evonik Industries AGEvonik rejected BASF's €22.15/share takeover proposal as undervaluing the company, potentially inviting a higher bid.
