Adnoc to Acquire Covestro in Billion-Euro Deal

The state-owned oil company Adnoc from the United Arab Emirates is set to acquire the German plastics group Covestro. The takeover price is approximately 62 euros per share, valuing Covestro at around 11.7 billion euros. This acquisition follows over a year of speculation and several months of concrete negotiations. Covestro's shares rose by 2.3% initially but remain below the proposed takeover price. The official announcement is expected this week, as reported by the Wall Street Journal.

Covestro, headquartered in Leverkusen, employs 17,500 people, including 7,000 in Germany, with significant operations in Leverkusen, Krefeld, Dormagen, Brunsbüttel, Houston, and Shanghai. The company produces foams and plastics for various industries such as automotive, construction, electronics, and furniture. The deal requires a minimum acceptance rate of 50% plus one share. Covestro supports the takeover, which includes a planned capital increase of 1.17 billion euros by Adnoc.

Adnoc's acquisition of Covestro aligns with a broader strategy among Gulf oil producers to diversify their business portfolios. This move comes after Adnoc acquired shares in the Austrian company OMV AG in 2022. The investment agreement between Adnoc and Covestro will run until 2028, ensuring mutual strategic growth and operational stability.