BASF has raised its takeover offer for Evonik Industries to €24 per share, Reuters reported on Friday, citing sources close to the deal.

The revised bid increases the valuation of Evonik to approximately €11.18 billion ($12.51 billion). This is a step up from BASF's original offer of around €22.15 per share, which amounted to a €10.3 billion valuation that Evonik rejected in September for being too low.

Evonik rejected BASF's takeover offer in September.  

Strategic motivation

In an official video, BASF CEO Markus Kamieth framed the merger as a vital defensive move against heavy competition from Asia and the Middle East, stating that a combined BASF-Evonik is the necessary "strong German response to global competition".

Kamieth highlighted that while Evonik currently has to purchase certain feedstocks, merging with BASF would allow them to source these materials more cost-effectively and reliably through BASF's integrated global Verbund value chains.

He also noted that the deal creates a timely exit opportunity for the RAG Foundation, Evonik’s largest shareholder, which has already expressed intent to reduce its stake.

In the official video, BASF CEO Markus Kamieth explained why BASF is seeking a combination with Evonik. (Source: BASF)

Job commitments

In an effort to win support, Kamieth offered explicit guarantees regarding local operations, particularly in Evonik's home region of North Rhine-Westphalia.

BASF has committed to honor existing site agreements, meaning compulsory redundancies would remain ruled out until 2032. Collective bargaining and social partnerships will remain untouched.

While Evonik plans to sell its chemical park operator, Syneqt—a move that impacts 3,500 local jobs—BASF proposed keeping the parks in Marl and Wesseling under internal management instead.

While emphasizing that a merger is the best path forward, Kamieth maintained a disciplined stance, concluding that BASF "will not pursue a merger at any price".