Evonik has rejected a reported €10.3 billion ($11.7 billion) takeover bid from BASF that would have created the world's biggest chemicals company, according to media reports citing sources at Reuters and the Financial Times.

BASF offered €22.15 per Evonik share following initial discussions of a potential takeover, Reuters sources said. The Financial Times reported that the offer price was too low for formal talks to begin — and too low for BASF to be granted due diligence access.

Evonik confirmed the approach in a statement that left little room for interpretation.

"In response to recent media reports, the Executive Board of Evonik Industries AG confirms that it has received a non-binding approach from BASF SE regarding a voluntary public takeover offer for all shares of the company," the company said.

"Currently there are no talks taking place," the statement added. "Evonik Industries AG does not intend to comment further on this matter beyond its legal obligations or respond to related inquiries."

Why does BASF want Evonik?

A BASF company source told Reuters that Evonik's portfolio fits the group well and could deliver cost benefits through synergies. A takeover would strengthen BASF's customer-facing business and boost company resilience, the source said, while also reducing the group's dependency on the European market.

For formulators and procurement teams in personal care, the strategic logic is straightforward. Evonik's portfolio spans specialty ingredients and consumer-facing businesses where BASF has historically been more weighted toward large-scale commodity chemistry. A combined entity would concentrate significant supply of cosmetic actives, emollients and functional ingredients under one roof — a consolidation with clear implications for pricing power and supplier diversification strategies across the industry.

The timing also matters. BASF is at risk of losing its top global ranking by chemicals revenue to Sinopec. Last year, its group revenue of €59.7 billion was almost the same as that of the Chinese company's chemicals division. Acquiring Evonik would extend that lead at a moment when European chemical producers face weak domestic demand and high energy costs.

What happens next?

For now, nothing formal. Evonik's board has shut down the discussion, and no talks are taking place. Whether BASF returns with a higher offer — or walks away — is the key question for ingredient buyers and competitors alike.

Watch for the next data point: a revised bid from BASF, a formal withdrawal, or Evonik's upcoming financial reporting, any of which could signal whether this deal revives or dies.