Abu Dhabi oil giant makes takeover offer in €10 billion for Covestro

Abu Dhabi National Oil Company (ADNOC) has approached Covestro with a takeover proposal worth more than 10 billion euros, according to a report from Reuters. Both ADNOC and Covestro declined to comment.

The report says the Abu Dhabi oil giant has made an informal offer to the German plastics and chemicals maker for a per share price in the mid-50 euros.

As said, the acquisition would give ADNOC, also a maker of refined products and petrochemicals, access to advanced materials used in electric vehicles, construction, as well as coatings, adhesives and engineering plastics. It would also support Abu Dhabi's plans to diversify the economy away from energy.

In April, Covestro announced that it got off to a better start than expected in the 2023 fiscal year and the company was able to limit the related negative impacts of weak demand. Group sales were down 20.1% to 3.7 billion euros YoY in Q1 of the year.