BASF confirmed Friday, September 25, that the company is in exploratory talks with Evonik and RAG-Stiftung, Evonik’s largest shareholder, regarding a potential takeover of Evonik. In its statement confirming the talks, BASF stated, “As part of its corporate strategy, BASF continuously evaluates the strategic option of acquisitions that strengthen its core businesses, deliver a strong strategic fit, drive profitable growth and create value. In doing so, BASF takes a disciplined approach.”

Earlier this month, Evonik announced plans to concentrate its business in Germany, closing two smaller sites in the country by next year. At the company’s Hamburg site, around 50 employees currently supply products for the cosmetics and personal care industry. In Bitterfeld, around 40 employees produce chlorosilanes. These businesses will continue, concentrated mainly at larger German sites. In the coming months, Evonik and employee representatives will negotiate socially acceptable solutions for the employees affected.