BASF takeover pledge targets Evonik job, site safeguards in Germany

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BASF takeover job safeguards

Highlights

BASF is prepared to include binding commitments on Evonik's German site operations and employment guarantees in any potential takeover agreement.
Evonik previously rejected BASF's 10.3 billion euro, or 22.15 euros per share, offer as too low, but BASF may consider increasing its bid if talks resume.
Trade union IG BCE and North Rhine-Westphalia politicians are demanding job and investment security for Evonik amid takeover talks, with the state parliament set to debate the deal Wednesday.

Takeover commitments and labour protections

As reported by Reuters, two people close to BASF say the chemicals group is prepared to write commitments on Evonik's German sites and employment guarantees into any possible agreement with the specialty chemicals maker. One of the people says BASF feels bound by those protections and would not waver on them.

BASF declines to comment on the information. Evonik said in September that BASF had approached it about a possible takeover, and people close to the talks later said Evonik rejected a 10.3 billion euro bid, equivalent to 22.15 euros per share, as too low.

Two people close to BASF also told Reuters on Friday that the company could raise its offer for Evonik if talks take place between the two groups. The employment guarantees at issue require any job cuts in Germany to be voluntary and accompanied by severance pay until 2032.

Regional pressure builds in North Rhine-Westphalia

Trade union IG BCE is calling for clear future prospects for Evonik employees as well as investment commitments for the company's sites. The issue is carrying particular weight in North Rhine-Westphalia, where Evonik is based and where politicians are watching the possible deal closely.

The state government said last week that jobs at Evonik and the company's independent development must not be put at risk by a takeover. The state parliament is set to debate the matter on Wednesday, underscoring the broader industrial and employment concerns tied to any transaction.

South32’s Groote Eylandt Mining Company (GEMCO) workforce review highlighted how rising operating costs and weather-related disruptions can translate into redundancies and formal employee consultations. Our earlier report noted that the mine was also weighing significant water-infrastructure spending while looking to remove costs, with union oversight and enterprise-agreement consultation requirements shaping how any job cuts could proceed.

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