Germany's DAX Index Falls; Potential BASF-Evonik Deal in Focus

11:52 AM EDT, 09/28/2026 (MT Newswires) -- German stocks welcomed the new trading week in the red, with the blue-chip DAX index down 0.13% on Monday's close, as investors prepare for a busy week of economic data releases. The ifo institute said fewer German companies are looking to reduce their workforce as the local labor market is "stabilizing," although a "real recovery" remains elusive. The ifo Employment Barometer edged up to 95.1 points in September from 94.8 points in the previous month. "In manufacturing, the situation has only marginally improved. The majority of companies are still planning to make do with fewer staff. New hires are planned only in the food industry and by manufacturers of data processing equipment, and electronic and optical products," the economic research institute said. "Among service providers, plans for layoffs and hires are largely balanced. Engineering firms, legal and tax consultants, and auditors are looking to hire additional employees." German chemicals company BASF's (BAS.F) takeover proposal was reportedly rejected by Evonik Industries (EVK.F), according to London's Financial Times. Sources told the newspaper that Evonik found the current bid of 22.15 euros per share to be "too low" to open its books for due diligence or begin formal talks. In an emailed response to MT Newswires, BASF said its "assessment assumes a synergy potential, which can only be validated with the engagement of Evonik" but that it does not comment on price. BASF's shares ended the trading day 0.28% lower, while those of Evonik added 2.43%. "BASF's exploratory talks regarding a potential takeover of Evonik are strategically understandable, given the opportunity to increase specialty-chemicals exposure, broaden the earnings base and capture cost synergies, but execution will be critical. The deal would also leave the combined group heavily exposed to Europe, where weak demand and structurally high costs remain a competitiveness challenge, while a sizeable acquisition could complicate BASF's recent deleveraging and capital-return story," analysts at mwb Research said in a note. "Evonik's current valuation at around 6.5x 2027E EV/EBITDA versus BASF at roughly 7.7x provides a reasonable starting point, but the eventual takeover premium, financing structure and realized synergies will determine value creation." Yves Müller is stepping down as chief financial officer and chief operating officer of Hugo Boss (BOSS.F) for personal reasons, effective Thursday. The German fashion group named executive vice president of business operations, Ivica Maric, as Müller's successor. At closing, the stock gained 0.66%. Meanwhile, the German economic calendar for the week includes the August retail sales and import price figures, as well as the country's and the euro area's unemployment rate and inflation rate data for September. In geopolitical news, Qatari mediators are expected to hold separate discussions with Iran and the US on Monday or Tuesday, an official briefed on the negotiations told Reuters. The talks will focus on an amended version of Iran's seven-day proposal to end the war and reopen the Strait of Hormuz.