BASF Explores Potential Takeover of Evonik, a Major Animal-Feed Ingredients Supplier
BASF is considering a takeover of Evonik, one of Europe's key producers of animal-feed ingredients, as both German chemical groups face pressure from high energy costs and weak demand. Both companies have confirmed preliminary contact, though no agreement has been reached. Analysts estimate potential annual savings of around €700 million if the deal proceeds.
GERMANY – BASF is considering a potential takeover of Evonik, a major producer of animal-feed ingredients, as the German chemicals group seeks to consolidate its portfolio and reduce costs, according to a report by Feed Business Middle East & Africa published on 30 September 2026.
BASF confirmed it had approached Evonik regarding a potential takeover offer after reports of discussions emerged. Evonik also confirmed receipt of a non-binding approach, although no agreement has been reached, the report stated.
Evonik produces specialty chemicals used across several industries, including additives and ingredients for animal nutrition. BASF, meanwhile, operates across chemicals, plastics and consumer ingredients and has been restructuring its portfolio since Markus Kamieth became chief executive in 2024.
The potential deal comes amid broader pressure on European chemicals producers. According to the report, the sector faces high energy costs, weak demand and growing competition from lower-cost producers outside Europe.
Evonik reported an EBITDA margin of approximately 13% in 2025, compared with an estimated 9% for BASF's core businesses, according to Deutsche Bank figures cited in the report. Analysts noted that the two companies also sell different products to some of the same customers, including animal-feed producers.
Bernstein estimates that cost savings equivalent to 5% of Evonik's 2025 sales would amount to around €700 million (US$819 million) annually, through overlapping operations and greater scale.
However, the potential acquisition faces several challenges. Evonik is already implementing a restructuring programme that includes thousands of job cuts, which could limit additional savings available to a buyer. German labour unions could also complicate further restructuring, while competition regulators may scrutinise areas where the two companies' product lines overlap, analysts said.
Evonik's largest shareholder, RAG-Stiftung, which holds a 44% stake, could also seek a higher premium for its shares, according to the report.
BASF has not attempted a takeover of this scale in two decades. Its current restructuring programme includes plans to reduce costs and sharpen the focus of its business portfolio.
The report noted that the potential transaction could change the ownership and strategic direction of a major supplier of animal-nutrition ingredients, although the impact will depend on whether BASF makes a formal offer and the terms of any eventual deal.
Prepared with AI assistance by Endata and reviewed by the editorial team.
