Essen, Germany — A German chemical industry union on Monday voiced skepticism over a possible takeover of specialty chemicals group Evonik by larger rival BASF, warning that greater size alone would not guarantee a secure future for jobs and production sites.

The takeover of one successful company by another does not automatically mean a brighter future for its sites and employees simply because the resulting company would be larger, said Michael Vassiliadis, head of the IGBCE union.

Evonik confirmed on Friday that larger rival BASF has made a non-binding approach over a possible takeover of the Essen-based company.

BASF also later confirmed exploratory contacts with Evonik and its largest shareholder, the RAG Foundation, over a potential acquisition.

"The course and outcome of the exploratory talks are currently open," the Ludwigshafen-based chemicals giant said.

Evonik said BASF's non-binding approach concerned a possible voluntary public takeover offer for all of the company's shares. But no talks are currently taking place, it added.

The RAG Foundation holds around 43.8% of Evonik, meaning its position would be crucial to any potential deal. It also noted that it currently has three outstanding bonds carrying rights to be exchanged for Evonik shares.

"What the employees and sites of both BASF and Evonik need, above anything else, are prospects for the future and commitments to investment," Vassiliadis said.

Such commitments were essential to strengthening German and European production sites amid intense pressure for consolidation in the industry, he added.

He noted that both companies were already implementing tough restructuring and staff reduction programmes. "Both groups should be careful not to overdo it," he added.

BASF has been cutting jobs and restructuring its operations. The company said in July that it had eliminated around 7,000 jobs worldwide between January 2024 and the end of June 2026.

Evonik also plans to cut another 3,200 jobs by the end of 2029, including 2,150 in Germany.

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