Not only brands are moving, so is the first part of the chemical sector's value chain. The map of suppliers and ingredients in the chemical and cosmetic industry could be facing one of its biggest movements in recent years. The German company BASF has explored a possible transaction with its competitor Evonik this year, according to Dealreporter, citing sources close to the operation.
According to information gathered by Seeking Alpha, both German chemical corporations would have held talks, although the exact scope and outcome of these negotiations are still uncertain today, as it has not been officially confirmed or denied by either party.
Various industry sources currently downplay the likelihood of an imminent merger or acquisition. The main reason points to the liquidity restrictions BASF is experiencing, whose current strategic focus is centered on first completing the IPO of its agricultural solutions division, an operation scheduled for mid-2027 and for which it has already selected financial entities such as Citi, Deutsche Bank, Goldman Sachs, and JPMorgan.
Both BASF and Evonik play a fundamental role in the value chain of the beauty, cosmetics, and personal care industry, being two of the main global manufacturers and developers of active ingredients, emulsifiers, polymers, and specialized raw materials. Any possible consolidation or alliance between both giants would have a significant impact on the sector's supply and innovation.