Abu Dhabi National Oil Company (ADNOC) signed a deal to buy German chemicals producer Covestro for €14.7 billion ($16.30 billion), the Emirati company announced on Tuesday.
ADNOC made “a takeover offer at €62.00 per Covestro share,” the German company confirmed in a separate statement.
“This will result in €1.17 billion proceeds, which Covestro will use to foster the further implementation of its strategy,” it added.
The investment agreement outlines ADNOC’s commitment to supporting Covestro's sustainable growth strategy and preserving its established corporate governance.
The offer is contingent upon securing at least 50% plus one share and customary closing conditions, including merger control, foreign investment control, and the EU foreign subsidies clearances, according to the statement.
The deal “marks a step change for ADNOC, supporting our international growth strategy focused on chemicals, gas, and low-carbon energies,” the Abu Dhabi company said on X.
Covestro was established in 2015 as a spin-off of German pharmaceutical group Bayer.
Commenting on the deal, Markus Steilemann, CEO of Covestro, said that with ADNOC's support, “we will have an even stronger foundation for sustainable growth in highly attractive sectors and can make an even greater contribution to the green transformation.”
For his part, Sultan Ahmed Al Jaber, ADNOC Managing Director and Group CEO, said that the “strategic partnership” aligns seamlessly with the company’s vision of sustainable growth and “vision to become a top 5 global chemicals company.”
By Handan Kazanci
Anadolu Agency
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