Covestro in ‘concrete negotiations’ with Adnoc over potential takeover

Leverkusen, Germany – Covestro AG has entered ‘concrete negations’ with Abu Dhabi National Oil Company (Adnoc) regarding a potential takeover bid that would value the German chemicals supplier just under €12 billion.

In a statement 24 June, Covestro said the starting point for the negotiations was a possible offer price of €62 per Covestro share, valuing the Leverkusen-based company at €11.7 billion.

The offer, it said, is subject, among other things, to the results of the confirmatory due diligence and agreement on the content of an investment agreement.

The two parties have been in discussions for nearly a year, with media reports suggesting that Adnoc initially proposed an offer price of €55/share and then €57/share.

Among the core aspects of the potential transaction, Covestro said, is support for the company’s further growth strategy.

“We have made good progress in our discussions with Adnoc. Therefore, we have decided to enter into concrete transaction negotiations,” said Markus Steilemann, CEO of Covestro.

Covestro has now postponed its planned capital markets day, scheduled for 27 June, until further notice.

The company did not provide further details, adding that at this time “there is no certainty whether the upcoming negotiations will lead to an agreement.”