Covestro rejects takeover proposal of €10 billion from ADNOC

Covestro has rejected the initial takeover from Abu Dhabi National Oil Company (ADNOC), saying the offer was as too low, reported Reuters citing sources familiar with the matter.

It was reported that ADNOC had approached Covestro with a takeover proposal worth more than 10 billion euros. At that time, sources were cited by Bloomberg News as saying that the Abu Dhabi oil giant is likely to keep operations of Covestro independent.

The sources of BNN Bloomberg said Covestro could consider discussing a potential deal with ADNOC if the latter offered better terms. ADNOC plans to assess the response of the German chemicals company before making further steps, the sources added.

Union Investment fund manager Arne Rautenberg was cited by Reuters as saying: “Covestro is a very well positioned, cyclical company that is currently cheaply valued. It would probably only be a matter of price whether the existing shareholders would accept such a takeover offer.”