Covestro AG, Adnoc enter open-ended discussions on acquisition
12 Sep 2023
Acquisition
Photo Credit: Covestro AG
In view of Abu Dhabi National Oil Co.’s (Adnoc, United Arab Emirates) interest in potentially acquiring Covestro AG (Leverkusen, Germany), a manufacturer of high-quality polymer materials and their components, the Covestro Board of Management has recently decided to enter into open-ended discussions. Whether, in which form and, if applicable, at which conditions an agreement between the parties will be reached is open and will depend on the course of forthcoming discussions. During these discussions, Covestro’s Board of Management will, in particular, also be addressing the safeguarding of further implementation of its future- and sustainability-oriented corporate strategy, including corresponding corporate governance provisions.
The move comes after Adnoc, the Abu Dhabi state energy group, expressed its interest in Covestro, and reportedly raised its bid price to around €14 billion. Adnoc most recently offers €60 per share for Covestro, an increase from June's offer of €55 per share, reports say.
“The interest of Adnoc in our company underlines our strong position as one of the world’s leading manufacturers of high-quality polymer materials and as a leader in the shift towards a circular economy, Dr. Markus Steilemann, CEO of Covestro, says. “Beyond current headwinds in our industry, we are optimally positioned to unlock significant long-term value in highly attractive industries underpinned by strong secular growth trends. Regardless of the talks with Adnoc, we will remain fully focused on pursuing our successful ‘Sustainable Future’ strategy in order to unfold our full potential and further drive the transformation towards the circular economy.”
Any agreement would, in addition to mutual consent on the commercial and legal transaction parameters, require the approval of the respective boards of the parties and the approval of the competent authorities.
Covestro presently does not intend to comment on this matter any further unless and until changed circumstances or events require publication by Covestro to comply with applicable disclosure rules.
Covestro is a global supplier of polycarbonate resins and films, thermoplastic polyurethane, PU materials and foams, and other specialty chemicals and materials.
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