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Abu Dhabi’s ADNOC has launched a takeover offer for all outstanding shares of German chemicals giant Covestro AG, following regulatory approval by Germany's Federal Financial Supervisory Authority. This move follows ADNOC’s October 1 deal to acquire Covestro for €14.7 billion ($16.3 billion), including debt, marking a major international expansion for the Abu Dhabi energy leader. Covestro shareholders are being offered €62 ($67) per share in cash, a premium of approximately 54% above Covestro's share price before rumors of the acquisition emerged on June 19, 2023. The offer is set to close on November 27, 2024.
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This acquisition is contingent on reaching a minimum acceptance threshold of 50% plus one share of Covestro's capital, as well as meeting other regulatory conditions. To strengthen its position, ADNOC has also committed €1.17 billion toward a 10% capital increase in Covestro to support funding. Originally a part of Bayer, Covestro’s primary products include key foam chemicals for mattresses, automotive seating, and building insulation.
Why it matters
The deal underscores ADNOC’s drive to diversify and grow its global footprint in advanced chemicals.