BASF to honour Evonik's commitments on sites, jobs in case of takeover, CEO says (updated)

Evonik Industries AG

Today 14:15

Adds Reuters sources on Evonik exploring move for Ashland and related details in paragraphs 6-8
DUESSELDORF/MUNICH, Oct 22 (Reuters) - BASF BASFn.DE said on Thursday it would honour existing agreements to preserve jobs made by takeover target Evonik EVKn.DE in the event of an acquisition and warned that more painful takeover approaches from abroad were looming.
"This means compulsory redundancies remain off the table until 2032. Collective bargaining agreements and the tradition of social partnership will remain intact," BASF CEO Markus Kamieth said in a video published on BASF's website.
Evonik said in September that BASF had approached it about a possible takeover. Sources close to the matter have told Reuters that Evonik rejected a bid of €10.3 billion ($11.54 billion), or €22.15 per share, as too low.
Kamieth pledged that one future executive board member of a combined group would be based at Evonik's current headquarters in the western German city of Essen, before warning of foreign takeover approaches if Evonik maintains its resistance to a deal.
"The chemical industry is undergoing consolidation, one way or another. The question is: do we take the initiative ourselves as German companies...Or do we simply wait while European chemical companies are overtaken in the global market or increasingly acquired by foreign investors?" he said.
Two people familiar with the matter told Reuters that Evonik itself had been exploring an acquisition of US rival Ashland ASH.N for some time, among other potential targets in the United States.
The deal consideration was earlier reported by Handelsblatt. 
Reuters reported in June that an activist investor built a significant stake in Ashland and wants the specialty chemicals company to sell itself.
Kamieth said BASF was ready for discussions, but a merger would not happen "at any cost". 
Ashland did not immediately respond to a Reuters request for comment. Evonik declined to comment.
Evonik CEO Christian Kullmann, who went on medical leave in August, has previously said there would be consolidation in the industry and Evonik wants to play an active role in it.
($1 = 0.8925 euros)
     

(Reporting by Tom Kaeckenhoff, Alexander Huebner, Patricia Weiss, Emanuele Berro 
Editing by Ludwig Burger, Kirsten Donovan)
((Emanuele.Berro@thomsonreuters.com; +48 587696510))