Germany's Evonik rejects BASF's $11.7 billion bid, sources say

Sept 28 — German chemicals manufacturer Evonik has ​rejected a €10.3 billion ($11.7 billion) takeover bid by BASF as too low, sources close to the negotiations said on ‌Monday.

BASF, one of the world's largest chemicals makers, had offered about €22.15 per Evonik ⁠share, the sources said. ​Evonik shares, which closed at €18.07 on ⁠Thursday before news of BASF's approach, closed up 2.4% ‌at €19.84 on Monday.

Shares in ‌BASF were little changed after a 3.6% fall on ⁠Friday when BASF said it ⁠was in exploratory talks with Evonik.

BASF added on Monday it was taking a disciplined approach and would not comment on price as this was "based on a potential for synergies that can only be verified if Evonik is involved".

Evonik and ‌its largest shareholder, the RAG foundation, ​declined to comment.

Evonik's products include high-tech plastics and feed additives as well as ingredients for coatings and household products. BASF makes engineering plastics, super absorbent polymers, vitamins and chemicals for industrial uses.

A BASF company source said Evonik's portfolio was well suited to the group, offering possible cost ​benefits through synergies. A takeover would strengthen customer-facing business and boost ‌company resilience, while ‌also ⁠reducing dependency on the European market, the source added.

BASF is at risk of losing its top global ranking by chemicals revenue to Sinopec. Last year its group revenue of €59.7 billion ‌was almost the same ​as that of the Chinese company's ‌chemicals division.

($1 = 0.8800 ⁠euros)

(Additional reporting ​by Ludwig Burger and Kanjyik Ghosh. Editing by Alexander Smith and ​Mark Potter)

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