BASF eyes potential takeover of Evonik

Evonik confirmed on 25 September that it had received a non-binding approach concerning a potential voluntary public offer for all its shares. The company said no talks were currently taking place.

BASF separately confirmed exploratory discussions with Evonik and the RAG-Stiftung, which owns approximately 43.8% of Evonik. No proposed price, transaction structure or timetable has been disclosed.

For the polyurethane industry, the potential acquisition extends beyond Evonik’s established range of catalysts, silicone surfactants, curatives, release agents and performance additives.

Evonik’s Interface & Polyurethane Additives business supplies flexible, rigid, automotive and microcellular foam producers, as well as manufacturers of coatings, adhesives, sealants and elastomers. Its brands include Tegostab, Polycat, Dabco, Kosmos, Ortegol, Versalink and Gorapur.

The company has also moved into digital production support through its Tego Rise software for flexible slabstock foam manufacturers.

Tego Rise combines production-line parameters, polyurethane chemistry and data science to simulate important processing conditions before a formulation is run on a commercial foaming line. It is intended to help manufacturers identify suitable machine settings, introduce new formulations with fewer production trials and reduce foam scrap.

The software can be used when transferring a new formulation into production or optimising an established formulation. It won the flexible-foam material innovation category at the 2024 Utech Europe Awards.

Evonik is simultaneously developing a chemical-recycling process for flexible PU foam from discarded mattresses, furniture and automotive seating.

Its catalytic hydrolysis technology breaks the foam down into polyol and toluene diamine. The recovered polyol can be used to manufacture new flexible foam, while the toluene diamine can subsequently be converted into TDI.

Evonik has produced foams using up to 100% recovered polyol and is operating a continuously run pilot plant at Hanau, Germany. In June 2026, the company received funding from the state of Hesse to support further development of the process and the establishment of a technology centre at the site.

The recycling work combines Evonik’s catalyst and additive knowledge with separation, purification and process-engineering capabilities. The company has worked with flexible-foam producer The Vita Group on trials of the recovered raw materials and with Remondis on the supply and processing of end-of-life mattress foam.

If a takeover proceeds without significant divestments, BASF would therefore acquire not only Evonik’s PU additives business but also its formulation data, application expertise, customer relationships, production-modelling software and proprietary recycling technology.

These capabilities could complement BASF’s upstream position in polyurethane raw materials by extending its involvement in foam formulation, production optimisation and the recovery of polyol and isocyanate precursors from end-of-life products.

However, the companies have not announced a formal offer, and it is too early to determine how Evonik’s individual businesses would be integrated or whether regulators would require disposals.

RAG-Stiftung has confirmed that BASF contacted it about a possible public offer. The foundation uses income from its investments, including its Evonik holding, to finance the continuing liabilities associated with Germany’s former hard-coal industry.

BASF generated sales of approximately EUR 60 billion in 2025. Evonik reported sales of EUR 14.1 billion and adjusted EBITDA of EUR 1.9 billion.

BASF

Evonik