The state government draws a line

On Wednesday, 14 October, NRW economy minister Mona Neubaur (Greens) told the state parliament that the state government opposes BASF's takeover of Evonik, the Essen-based chemicals group. She said Evonik is an important part of the state's energy location and argued that research, development and the company headquarters should stay in North Rhine-Westphalia, particularly as the chemical industry faces structural challenges. Labour minister Karl-Josef Laumann (CDU) added that he wants an independent Evonik to remain in NRW, pointing to the group's good wages and its social partnership. Neubaur also put the RAG foundation on notice as the largest shareholder, saying it must keep financing its perpetual liabilities and invest its assets carefully. The foundation has so far not published a clear line on how it will proceed.

In the chamber, Neubaur put the government's position in one line:

We are against this takeover.

Offer terms and the board's rejection

BASF has offered 22.15 euros per Evonik share, which values the group including debt at just over 14 billion euros, according to the Frankfurter Allgemeine Zeitung (FAZ). Evonik's executive board rejected that first offer straight away, arguing that the price was no basis for talks. Handelsblatt cites around 10 billion euros for the rejected bid, and the reports have not reconciled the two figures. The companies and the RAG foundation had made the offer public at the end of September, and Evonik has since argued for its independence to investors, unions and politicians. According to the FAZ, BASF's board would raise its bid, but only if Evonik signals flexibility and opens its books. A person close to the transaction told the paper that BASF has no plans to close sites and that Evonik's pledge to rule out operational dismissals until 2032 would stay in place, while a merger would still cost jobs. BASF prefers a cash deal, though partial payment in shares is not ruled out.

Parliament splits along party lines

The SPD requested the Landtag debate, and parliamentary group leader Jochen Ott warned of job losses and of a gradual shift of central functions away from the state. Ott wants binding employment and site guarantees with a lasting horizon, and he said decisions on Evonik must be made from NRW and for NRW.

A takeover of Evonik would be more than an ordinary stock market deal.

If those conditions are not met, Ott said, other routes should be examined, up to a stake for the state in the company. CDU politician Björn Franken replied that the Evonik board had clearly turned the offer down and accused the SPD of scaremongering. He said the premier and the state government had clearly backed Evonik's sites and that BASF is "not the right player in the system". Franken also stressed that the offer remains non-binding.

There is no binding takeover offer so far.

The RAG foundation and the NRW premier

The RAG foundation holds nearly 44 percent of Evonik, which makes it by far the largest single shareholder, and a takeover is hard to push through without its consent. The foundation's executive board is chaired by Bernd Tönjes, who also chairs Evonik's supervisory board. The foundation's supervisory body discussed the offer for the first time on Friday, 9 October, in Essen, and afterwards only said it had been briefed by the executive board. NRW premier Hendrik Wüst (CDU) sits on that body, which is led by former NRW premier Armin Laschet (CDU); federal ministers Katherina Reiche (CDU) and Lars Klingbeil (SPD) and IG BCE chief Michael Vassiliadis are also members. Handelsblatt reports, citing people involved, that Wüst is expected to play for time and postpone a decision, while the main shareholder intends to stay out and let the two executive boards negotiate first.