Mwb Keeps BASF at Hold Amid 'Increasingly Convincing' Merits of Potential Evonik Acquisition

11:13 AM EDT, 10/26/2026 (MT Newswires) -- Mwb Research maintained its hold rating on BASF (BAS.F) as it noted the "increasingly convincing" strategic logic behind the group's potential acquisition of fellow German chemicals company Evonik Industries (EVK.F). "BASF CEO Markus Kamieth has provided a more concrete industrial rationale for a potential Evonik acquisition, particularly through feedstock, procurement and infrastructure synergies linked to BASF's Verbund network. While the strategic logic is increasingly convincing, we question whether greater integration could ultimately reinforce BASF's exposure to structurally high-cost European production rather than improve its long-term competitiveness," the research firm said Monday. Analysts added that a sizeable cash-funded acquisition could also impact BASF's balance-sheet improvement and limit its flexibility to return capital to shareholders in the future. "We therefore continue to distinguish between an attractive industrial rationale and a financially compelling transaction. The absence of quantified synergy targets, combined with employment commitments and a potentially rising acquisition premium, leaves considerable uncertainty around achievable returns," mwb said. The stock's price target was also left unchanged at 55 euros.