The oil company’s offer values Covestro at 11.7 billion euros.
The German chemist Covestro is preparing to change hands. He announced on Monday: enter into concrete negotiations » with the UAE national oil company regarding its takeover. Adnoc’s offer values Covestro at nearly 12 billion euros. “ At present, it is uncertain whether the upcoming negotiations will be successful ». More ” discussions held so far have shown that Covestro and Adnoc can agree on the essential aspects of a possible transaction », Specified the German chemist.
Covestro, resulting from a Bayer spin-off, has agreed to enter a due diligence phase, during which Adnoc will be able to consult its accounts. The Emirati and the German chemist have been in discussions for several months already. Adnoc’s first offer only valued Covestro at 55 euros per share, compared to 62 euros for its last offer.
German chemistry in bad shape
Covestro has expertise in the field of chemical recycling and CO reuse2 , which could be useful to the United Arab Emirates oil giant. The whole of German chemistry is in a very difficult situation. This flagship sector of industry across the Rhine has been hit hard by the rise in energy prices resulting from the interruption of Russian gas deliveries. The model of large German conglomerates which prevailed until then is painfully competing with American or Asian chemicals.
