Business · Companies · 11 hrs ago

BASF chief offers job guarantees to win support for Evonik takeover

BASF chief offers job guarantees to win support for Evonik takeover

BASF chief executive Markus Kamieth is promoting a BASF takeover of rival Evonik in Germany.

He says a merger would help German chemical companies compete with growing rivals in Asia and the Middle East.

Evonik is already undergoing a restructuring that could cut thousands of jobs by 2029.

Kamieth says forced layoffs would be ruled out until 2032 and existing labor agreements would remain unchanged.

He also says Essen and North Rhine-Westphalia would stay important, and BASF could continue operating Evonik's chemical parks in Marl and Wesseling.

Evonik rejected an earlier offer, reported at about €14 billion, as too low, and BASF says it is ready to talk but will not pursue a deal at any price.

The RAG Foundation, which owns about 43% of Evonik, is a key shareholder, and no takeover agreement has been announced.

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What people are saying

Markus KamiethBASF chief executive
Now is the time. Think smaller alone or bigger together.
via Handelsblatt
Operational redundancies would be ruled out until 2032.
via WirtschaftsWoche
Collective agreements will remain untouched.
via Handelsblatt
A merger will not happen at any price.
via WirtschaftsWoche