ADNOC takes over German chemicals giant Covestro

Germany

LEVERKUSEN, October 2, 2024 – ADNOC and Covestro have signed an agreement whereby Adnoc will make a public takeover offer of all outstanding shares of Covestro at a price of EUR 62 per share, Covestro announced on Tuesday.

Covestro is a leading manufacturer of polymer materials and their components, which it supplies to the transportation, construction, healthcare and power sectors, as well as to the chemicals industry itself. The company has 48 production sites worldwide and generated sales of EUR 14.4 billion in 2023.

Upon closing of the transaction, Covestro will increase its share capital by an additional 10% and issue all shares to ADNOC at the same purchase price. All told, the agreement implies a total valuation of around EUR 14.7 billion for Covestro, including around EUR 3 billion in debt.

“As a global leader and industrial pioneer in chemicals, Covestro brings unmatched expertise in high-tech specialty chemicals and materials. This partnership is a natural fit and aligns with ADNOC’s ongoing smart growth and future-proofing strategy and our vision to become a top 5 global chemicals company,” said H.E. Sultan Ahmed Al Jaber, ADNOC managing director and group CEO.

ADNOC has committed to supporting Covestro in the execution of its standing growth strategy. Covestro will continue to be run as a stock corporation and the company’s management board will maintain responsibility for operations and strategic direction.

ADNOC’s offer is subject to a minimum acceptance level of 50% plus one share and customary closing conditions.

Photo of Covestro’s Brunsbüttel industrial park courtesy of Covestro