Covesto's assessment by Adnoc is nearing completion, resulting in an upward trend in their shares.
For quite some time now, Adnoc has been seeking to buy out chemical company Covestro. Information from multiple sources suggest that the financial assessment of Covestro is nearing completion. A proposed cost of 62 euros per share for this DAX company is still being considered.
According to three confidants, the scrutiny phase is in its final stages, with the major issues having been addressed. An announcement might be made in September, keeping the proposed cost of 62 euros per Covestro share in mind. Neither Covestro nor Adnoc wished to comment, and neither did Bloomberg.
On the stock exchange, Covestro shares surged up to 5.7% to 56.90 euros, reaching their highest level in nearly three years. They were also the top performer in the DAX. At the end of June, Covestro announced that they had started concrete negotiations with Adnoc.
The oil company from Abu Dhabi had previously hinted at a potential offer of 62 euros per share, contingent on the Covestro financial review results. This would put the DAX company's valuation at 11.7 billion euros. At the end of July, CFO Christian Baier stated that there had been advancements in the talks with Adnoc, with the negotiations continuing to be highly cooperative.
Covestro was once a plastics division of Bayer, which they took public in 2015. The company has a global workforce of around 17,500, with nearly 7,000 in Germany. Covestro produces precursors for various industries, including automotive, furniture, appliances, and construction. These can be found in mattresses, car seats, wind turbine blades, among other things.
The potential acquisition of Covestro by Adnoc, if successful, could significantly impact the chemical industry, given Covestro's role as a key supplier of precursors for various industries. Despite the ongoing negotiations and financial assessment, Adnoc has not disclosed any official plans to expand its presence in the chemical industry through this acquisition.
