Abu Dhabi National Oil Company (ADNOC) reached the final phase of negotiations on Wednesday for a landmark public takeover of German specialty chemicals manufacturer Covestro AG, valuing the DAX-listed enterprise at approximately €14.7 billion ($16.4 billion) including assumed net debt.
Under the mutually agreed transaction parameters, ADNOC will offer €62 per share in cash for all outstanding Covestro stock. The offer culminates more than a year of intensive due diligence and negotiations between Abu Dhabi and Leverkusen executives.
Strategic Expansion into European Specialty Materials and Circular Chemistry
The acquisition represents the largest foreign industrial buyout ever executed by a Gulf sovereign energy conglomerate in Europe, signaling ADNOC's aggressive strategic pivot from upstream crude extraction toward high-value petrochemicals, advanced engineering polymers, and sustainable materials.
Covestro's board of management and supervisory board affirmed their intention to recommend the takeover to shareholders upon publication of the formal offer document, citing robust commitments secured from the Emirati energy powerhouse.
“This partnership marks a transformative milestone in ADNOC's international chemicals growth strategy. Together with Covestro's world-class engineering talent, we will build a global leader in high-performance materials.”
Commitment to German Labor Co-Determination and Capital Injection
Crucially, ADNOC has pledged a direct capital increase of €1.17 billion through newly issued shares upon transaction close, providing Covestro with dedicated funding to accelerate its 'Sustainable Future' strategy and transition toward circular chemistry.
To address concerns raised by German labor unions, ADNOC formally committed to maintaining Covestro's corporate headquarters in Leverkusen, respecting existing collective bargaining agreements, preserving plant sites, and upholding Germany's co-determination governance framework through at least 2028.
Comments (0)
Log in to join the discussion.