Covestro's offer from ADNOC elevated to a proposed twelve billion euros.
The Arabian energy titan, Adnoc, is inching closer to acquiring the German chemical powerhouse, Covestro, with a revised offer of twelve billion Euros. Reports suggest that the emirate-based conglomerate has been successful in shaping the facts on the ground. The DAX-listed Covestro is initiating concrete negotiations.
Adnoc, the oil colossus from the United Arab Emirates, plans to purchase Leverkusen's chemical powerhouse, Covestro. The Covestro board has chosen to engage in talks with Adnoc from Abu Dhabi, as per the company's announcement, "for possible transaction and the conclusion of an investment agreement." Adnoc has proposed an offer price of 62 Euros per Covestro share, valuing Covestro at approximately twelve billion Euros. The stocks saw steep gains at the exchange, peaking at 54.50 Euros in the DAX, with a surge of more than six percent.
Both corporations have been in negotiations for months, with Covestro disclosing this information in September. According to reports, Adnoc (Abu Dhabi National Oil Company) initially presented an offer of 55 Euros per share, later increasing it to 57 Euros per share.
The previously unproductive negotiations have indicated the potential for mutual agreement on crucial matters, including Covestro's growth strategy moving forward. Thus, the board has opted to engage in concrete negotiations. In the event of an agreement, the respective committees of the companies and the relevant antitrust authorities would need to give their approval.
Covestro prides itself on being one of the leading global plastic producers. They cater to industries such as mobility, construction and housing, electronics and electronics, sports and leisure, telecommunications, health, and even the chemical industry itself. In the last year, Covestro reported earnings of 14.4 billion Euros, while operating at 48 locations worldwide with around 17,500 employees. Covestro was derived from the Bayer Group. Adnoc, in its own statements, is a state-owned entity and is among the largest crude oil exporters globally.
