BASF Pledges Evonik Job Security Through 2032
German chemicals giant BASF announced on October 22 that it plans to honor Evonik’s existing job-preservation agreements with labor in full if its takeover of the rival company succeeds. CEO Markus Kameith stated in a video message that the commitment includes no forced layoffs through 2032.
Markus Kameith Offers Employment Guarantees Through 2032
BASF proposed acquiring Evonik for €10.3 billion, or roughly $11.5 billion, amounting to €22.15 per share. Evonik previously disclosed the approach in September but rejected the initial offer as too low. Kameith warned in his video message that if Evonik continues to resist a sale, harsher takeover offers from outside Germany could emerge.
The acquisition proposal aims to create a strong German answer to global competition as competitors in Asia and the Middle East grow more competitive. Kameith pledged that the combined group will preserve collective bargaining agreements and labor-management partnerships. One member of the new management board will remain based in Essen, western Germany, keeping regional roots intact.
Evonik Restructuring and Ashland Acquisition Interest
Evonik is currently executing a large-scale restructuring plan involving thousands of job cuts scheduled through 2029. Kameith acknowledged local concerns in the Ruhr region, noting his own upbringing in Dinslaken as the son of a coal miner. Despite these local assurances, integrating the two chemical giants would still require a review of staffing levels and a realigning of business portfolios.
Meanwhile, Evonik has emerged as an independent suitor for U.S.-based chemicals company Ashland. Ashland holds a market capitalization of about $3.3 billion on the New York Stock Exchange and initiated a search for a buyer under pressure from activist shareholders. Evonik enlisted investment banks Perella Weinberg and JPMorgan to study potential targets before BASF made its takeover approach. Investment funds Advent, Apollo, and Carlyle have also approached Ashland, and an eventual absorption of Ashland by Evonik would increase its corporate scale and complicate a potential BASF buyout.
Investors Monitor Potential Bids for Ashland
Investors continue to monitor whether Evonik will pursue Ashland further or if BASF will revise its offer upward. Share prices for both companies reflect ongoing sector consolidation. Industry observers are watching how the European chemicals market responds to foreign investment pressures and domestic consolidation efforts.
