0854 GMT - A tie-up between BASF and Evonik could prove complicated, analysts at Bernstein write in a note. German chemicals giant BASF said last week it had opened talks with its smaller rival, noting its interest in acquisitions that fuel growth. "There is a price / synergy level where the logic for this transaction could be compelling," Bernstein says. But a takeover of Evonik would skew BASF's assets further toward Europe and a combined group would likely trade at a lower multiple than BASF alone, the brokerage estimates. "We have our reservations about a combined BASF-Evonik equity story, as we believe BASF can extract substantial value from their existing assets and there is no guarantee a transaction goes ahead," Bernstein says.
At the request of the copyright holder, you need to log in to view this content
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.