Adnoc seals €12bn acquisition deal with Covestro

Leverkusen, Germany – Abu Dhabi National Oil Co. (Adnoc) has sealed a deal to acquire German chemicals manufacturer Covestro AG for the price of €11.7 billion.

As part of the agreement, Adnoc International Ltd and subsidiary Adnoc International Germany will make a public takeover offer for all outstanding shares of Covestro at a price of €62.00 per share, said Covestro 1 Oct.

Furthermore, Adnoc International Germany has agreed to subscribe to 18.900.000 new Covestro shares upon completion of the transaction.

At an offer price of €62.00, this will result in €1.17 billion proceeds, which Covestro said it will use to foster the further implementation of its strategy.

As part of the deal Adnoc will commit itself to “fully supporting” Covestro’s "sustainable future" strategy and the currently established governance.

“We are convinced that the agreement reached today with Adnoc International is in the best interest of Covestro,” said Dr Markus Steilemann, CEO of Covestro.

With the support, Steilmann said, Covestro will have a “stronger foundation for sustainable growth in highly attractive sectors.”

Covestro will bring “unmatched expertise in high-tech speciality chemicals and materials,” to Adnoc, said Dr Sultan Ahmed Al Jaber, Adnoc managing director and group CEO.

The move, said the Adnoc CEO, will support the company's strategy to become “a top 5 global chemicals company.”