This offer, which will be subject to the “results of an audit” carried out by the Emirati national company, would value the plastic and chemical products manufacturer at 11.72 billion euros.
The German plastics and chemicals manufacturer Covestro announced on Monday that it was “entering into concrete negotiations” on its takeover by the Emirati national oil company Adnoc, on the basis of an offer valuing the group at nearly 12 billion euros.
“The board of directors of Covestro decided today, after consulting the supervisory board, to enter into concrete negotiations with Adnoc” with the “starting point of discussions on a possible offer of 62 euros per share,” he said. he indicated in a press release.
This offer, which will be subject to the “results of an audit” carried out by Adnoc, would value Covestro at 11.72 billion euros, according to an AFP calculation.
“At present, it is not certain that the upcoming negotiations will result in an agreement”, even if “the discussions held so far have shown that Covestro and Adnoc can agree on the essential aspects of a possible transaction,” Covestro clarified.
After this announcement, the price of the German chemist gained 4.84% to 53.70 euros at 10:08 GMT, on a DAX index up 0.51%.
Discussions between the two companies have been going on for several months. Their existence was confirmed by Covestro last September.
Adnoc’s first approaches included a buyout price of 55 then 57 euros per share, according to the financial agency Bloomberg. This amount was then gradually increased during discussions between the two companies.
The national company Adnoc is the oil giant of the United Arab Emirates, which is among the leading exporters of crude oil in the world. Its boss, Sultan Al Jaber, was notably president of COP28.
Covestro, for its part, displays technology and expertise in areas such as chemical recycling and CO2 reuse. Adnoc is interested in these crucial technologies for the future of chemistry.
Covestro’s product portfolio also provides access to end markets, including electric vehicles, thermal insulation and adhesives.
German chemicals, represented by heavyweights like BASF and Bayer, are going through a serious industrial crisis linked to rising energy costs since the interruption of Russian gas deliveries.
