Maybe BASF Has Better Takeover Options than Evonik
Dow Jones09-28
0930 GMT - BASF might do better to look at other targets than Evonik, JPMorgan's Chetan Udeshi writes. The German chemicals group said last week it had approached its smaller rival Evonik over a takeover, without naming a price. Consolidation is one of the few credible routes for players in the chemicals industry to boost their competitiveness and returns, Udeshi says. But there are likely better fits for BASF than Evonik, he adds, noting the overlap between the two companies' product portfolios. While a cash deal would likely offer a lift to BASF's earnings, it would risk stretching the company's balance sheet, Udeshi says.
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