The Chemical Conquest

The Chemical Conquest

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  • Abu Dhabi National Oil Co. (Adnoc) has approached German chemical producer Covestro AG for a potential takeover, which would be Adnoc's largest-ever overseas acquisition. The preliminary talks involve an offer in the mid-€50s per Covestro share, implying a premium of nearly 40% and valuing the company at around €11 billion ($12 billion).

  • Adnoc's potential acquisition of Covestro would likely maintain the company's independence. Adnoc intends to support Covestro's management in business expansion and sustainability efforts, aligning with Abu Dhabi's ambitious dealmaking strategies. 

Why it matters

The potential acquisition of Covestro by Adnoc is still in early discussions and there is no guarantee of a final decision. Adnoc's recent activities include purchasing shares in OMV AG and forming a partnership with Apollo Global Management Inc. to bid for Braskem SA. Covestro, a spin-off from Bayer AG, attracted interest from Apollo and other buyout firms in the past but no deals materialized.


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