Covestro AG, the German chemicals company, is in formal talks with Abu Dhabi's national oil company (Adnoc) following a takeover bid. After initially offering €55 per share, Adnoc has raised its offer to €60 and suggests it could go as high as €62 per share.

Adnoc is currently carrying out due diligence, which marks a turning point in the negotiations that have been going on for around a year. 

The discussions come at a time when Covestro, like other German chemical giants, has been recovering from the impact of the Covid-19 pandemic and the rise in energy prices that made the company less attractive. The situation has since improved, strengthening Covestro's negotiating position.

For Adnoc, the acquisition of Covestro would represent a strategic diversification of its activities, enabling it to strengthen its presence in the petrochemicals sector beyond the sale of crude oil and to consolidate its production in the Middle East with an expanded global footprint.

 


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