BASF explored a possible transaction with competitor Evonik this year, according to Dealreporter and Mergermarket, citing sources familiar with the matter. Neither company has confirmed or denied discussions.
Industry sources downplay the likelihood of an imminent deal, citing BASF's liquidity constraints as the primary barrier. BASF is focused on completing an initial public offering of its agricultural solutions division, scheduled for mid-2027. The company has already tapped Citi, Deutsche Bank, Goldman Sachs and JPMorgan to underwrite the offering.
Any consolidation between BASF and Evonik—major suppliers of active ingredients, emulsifiers, polymers and specialty chemicals to the beauty, cosmetics and personal care sectors—would reshape supply dynamics and innovation capacity in the industry. BASF signaled its appetite for scale in May 2025 by acquiring the remaining stake in its Alsachimie joint venture, a move that underscored its focus on backward integration and competitive positioning.
For now, BASF's near-term strategy centers on executing the agricultural IPO. A merger with Evonik would conflict with that capital allocation priority.
