Key Takeaways:

• BASF is weighing a takeover of Evonik, another heavyweight supplier of ingredients.
• A deal would bring two major personal care ingredient portfolios under one roof.
• The talks show consolidation moving deeper into beauty’s supply chain.

Global chemicals giant BASF is exploring a potential takeover of specialty chemicals company Evonik Industries, a deal that could bring two German suppliers under one owner and significantly reshape the upstream ingredient supply chain.

BASF confirmed on September 25 that it is holding exploratory discussions with Evonik and RAG-Stiftung, Evonik’s largest shareholder, regarding a potential takeover. Evonik said it had received a nonbinding approach from BASF for all of its shares. No offer price or transaction structure has been disclosed, and BASF cautioned that the outcome remains open, according to a company statement.

Any deal would extend far beyond beauty. BASF generated approximately €60 billion ($68 billion) in sales in 2025, while chemicals company Evonik reported €14.1 billion ($16 billion) in sales. Both, however, are significant suppliers to beauty and personal care manufacturers, making a potential combination consequential for the industry’s ingredient supply chain.

Two Beauty Suppliers, One Potential Owner

BASF’s Nutrition & Care business generated €6.509 billion ($7.4 billion) in sales in 2025 and supplies personal care ingredients spanning surfactants, emulsifiers, emollients, polymers, actives, and UV filters.

Evonik’s Care Solutions business similarly supplies the beauty industry with capabilities and technologies including ceramide, biotech-derived collagen, biosurfactants, actives, and...