**Abu Dhabi’s Oil Giant Makes Historic $16.4 Billion Acquisition**
In a landmark deal, Abu Dhabi National Oil Company (ADNOC) has agreed to acquire German chemicals firm Covestro for a staggering 14.7 billion euros ($16.4 billion). This voluntary public takeover marks a significant milestone in ADNOC’s international growth strategy, solidifying its position as a top-five chemicals player globally.
The acquisition implies an equity value of around 11.7 billion euros, representing a 54% premium to Covestro’s closing price on June 19. As part of the deal, ADNOC will provide additional funding by purchasing 1.17 billion euros worth of new Covestro shares from a capital increase.
Covestro, a former unit of Bayer, specializes in high-tech specialty chemicals and materials, utilizing advanced technologies including AI. Its products are used in various sectors, including construction, engineering, sports, telecommunications, and the chemical industry.
“This acquisition is a key step in our international growth strategy, and we are excited to welcome Covestro to the ADNOC family,” said Sultan Ahmed al-Jaber, group CEO and managing director of ADNOC. “As a global leader and industrial pioneer in chemicals, Covestro brings unmatched expertise that will accelerate our sustainable future strategy.”
Covestro CEO Markus Steilemann praised the deal, calling it “unprecedented” and a testament to the quality of the partnership. Despite challenges facing the global and German chemicals sector, Steilemann expressed confidence that the acquisition will enable Covestro to accelerate its sustainable future strategy.
The deal marks ADNOC’s continued expansion into the chemicals sector, following its recent acquisitions of a 24.9% stake in Austrian chemicals firm OMV and a majority stake in ammonia producer Fertiglobe. Analysts expect limited antitrust and regulatory risk from the deal, given the limited operational overlap between ADNOC and Covestro.
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