Skip to content Skip to Search
Skip navigation

Covestro begins formal talks with Adnoc on its $12bn bid

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

German plastics and chemicals maker Covestro confirmed it has started takeover talks with Abu Dhabi National Oil Company (Adnoc).

“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 the forthcoming discussions,” Covestro said in a statement on Saturday.

Reuters in August reported that the Abu Dhabi energy company indicated to Covestro that it may raise its informal offer to €60 ($64) conditional on the German company entering formal talks.

That non-binding offer will value Covestro at €11.6 billion.

Adnoc in June made a non-binding offer for Covestro of €55 per share, which was rejected.

“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,” Markus Steilemann, CEO of Covestro, said.

“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,” he added.

The German company’s second-quarter sales fell to €3.7 billion, a 20 percent decline year on year. Earnings before interest, taxes, depreciation and amortisation slipped 30 percent annually to €385 million.

Latest articles

Boat, Transportation, Vehicle

Bahri withdraws bid for Danish logistics company

Saudi shipping giant Bahri has withdrawn from the race to acquire Deutsche Bahn’s logistics unit Schenke, according to a news report. The CVC-led consortium, including Abu Dhabi Investment Authority (ADIA) and GIC, and DSV, a Danish logistics group, are the only two contenders left, Reuters reported, citing unnamed sources. Bahri’s offer was the highest at […]

Over the first half of the year Sanad Group signed deals with international airlines including Asiana Airlines and Deucalion Aviation

Mubadala-backed Sanad Group reports 53% revenue growth

Sanad Group, the Abu Dhabi-based global aerospace engineering and leasing company, has seen revenues increase by more than half over the first six months of the year. Figures released to AGBI show revenue totalling AED2.3 billion ($620 million) was reported in the first half of the year, up from AED1.5 billion over the same period […]

Malaysia’s HSS Engineers Berhad and its emirati consultancy HSS signed the deal top oversee construction with the Baghdad municipality

UAE company in joint venture to build Baghdad metro

A Malaysian engineering company and its UAE affiliate have jointly won a $316 million contract to oversee the construction of the new Baghdad metro. The building of the planned 148-kilometre network and its 64 stations across the Iraqi capital was slated to begin this month and end in 2029. This timeline might be delayed, however, […]