Covestro is headquartered in Leverkusen, Germany. The company adjusted its full-year 2022 guidance, taking into account a variety of factors.
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Abu Dhabi state oil company ADNOC said on Tuesday it had agreed to acquire German chemicals company Covestro for 14.7 billion euros ($16.4 billion).
ADNOC (abbreviation for Abu Dhabi National Oil Company) will launch a voluntary public offer of 62 euros per share, which means Covestro’s equity value is approximately 11.7 billion euros, a premium of approximately 54 euros to Covestro’s closing price on June 19. %, Covestro said in the report statement.
Covestro shares were up 3.7% as of 10:09 a.m. London time.
ADNOC said in a separate statement that the enterprise value of the deal was 14.7 billion euros. The company added that the deal is critical to the company’s international growth strategy to become a top five chemicals company.
Sultan Ahmed al-Jaber, CEO and Managing Director of ADNOC Group, said: “As a global leader and industrial pioneer in chemicals, Covestro has unparalleled expertise in high-tech specialty chemicals and materials by leveraging advanced technologies such as artificial intelligence. expertise.
Covestro was formerly bayerproduces polymer materials used in construction and engineering processes. Its products are used in fields such as sports, telecommunications and the chemical industry.
As part of the transaction, ADNOC also signed an investment agreement committing to provide additional funding through a capital increase to purchase €1.17 billion worth of Cos Innovation shares.
‘Unprecedented’ transaction
Covestro CEO Markus Steilemann told CNBC’s “Street Signs Europe” on Tuesday that the deal was reached after “in-depth” and “very constructive” discussions.
“At least as far as I know, this is probably the largest transaction that is about to happen between a Middle Eastern strategic investor and a German DAX listed company. This is unprecedented, which means that we put quality over time.” Staley Mann said.
Stelemann, who is also chairman of the German Chemical Industry Association, pointed to challenges facing the global and German chemicals industry and acknowledged that these headwinds will not go away now that the company has new owners.
“I think that with stronger partners at our side, we can accelerate the implementation of our strategy for a sustainable future in all overall economic conditions. From this perspective, I am tired, but at the same time, for us to achieve this “Excited about this milestone,” the CEO told CNBC.
German materials giant open its book The document was submitted to Abu Dhabi National Oil Company (ADNOC) in June following reports of takeover interest. Abu Dhabi National Oil Company (ADNOC) has been looking to expand its footprint in the chemicals industry as it seeks to diversify its investment portfolio.
Earlier this year, the UAE oil giant completed a deal to acquire a 24.9% stake in Austrian chemicals OMV. At the end of 2023, ADNOC also became the majority shareholder of ammonia producer Fertiglobe after agreeing to acquire OCI’s stake in Fertiglobe for US$3.62 billion.
Analysts at Jefferies said in a note on Tuesday that they expected limited antitrust and regulatory risks from the deal, given “limited business overlap.”
Covestro said its management and supervisory board believe they will recommend the deal to the company’s shareholders, subject to review of the offer.
