BASF is in early talks to take over Evonik. If you carry either line, start planning.
Evonik reportedly turned down about €10.3 billion as too low, and no formal negotiations have started. A combined company would have about $84 billion in revenue, with one supplier holding two price lists and two sets of allocation rules.
Tis the season!
BASF confirmed Monday that it is in early talks about a takeover of Evonik, another German chemical maker. The FT reports Evonik rejected an offer of about €10.3 billion as too low. BASF calls the outcome open, and no formal negotiations have started.
If it ever happens, the combined company would have about $84 billion in annual revenue. One supplier could hold two price lists and two sets of allocation rules.
There are definitely overlaps in household/surfactant chemistries, but it seems synergistic for other aspects.
For my friends in the chemical distribution space, start thinking about replacing either line as they will make some duplicate distribution channels ‘redundant’ (aka: synergies).
My AI workshops show you how to handle replacing suppliers and finding new products to sell to existing customers. Be proactive and prepared as this merger changes the landscape.