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Adnoc raises bid for Covestro to $12.4bn

Covestro says any agreement will require the approval of the respective boards and the approval of the competent authorities

Abu Dhabi National Oil Company (Adnoc) has increased its takeover bid for German chemical producer Covestro AG to €11 billion ($12.4 billion), Bloomberg reported, citing informed sources.

The Abu Dhabi energy firm’s latest proposal values Covestro at €57 per share, up from its first informal bid of €55 apiece.

Reuters last month reported that the Adnoc takeover proposal was worth more than €10 billion ($11 billion) but Covestro rejected it as being “too low”.

Adnoc has taken steps to address Covestro’s concerns on how it can help the German company develop its specialty chemical operations.

The report said a further increase in the bid price is possible if negotiations get underway.

Adnoc plans to invest $150 billion to expand production capacity for crude, natural gas and chemicals.

The company is also in talks with Austria’s OMV AG on a potential merger of two petrochemical firms – Borouge Plc and Borealis AG.