Adnoc to acquire chemical company Covestro for $16bn

Abu Dhabi National Oil Company (Adnoc) is expected to make a formal offer to buy German chemical company Covestro AG.

The Financial Times reported that the 14.4 billion euros ($15.90 billion) offer will set up the state-owned energy producer to expand its overseas holdings.

The companies have been in talks since Adnoc made an initial informal offer in September 2023.

---

Newsletter
Get the Best of AGBI delivered straight to your inbox every week

---

In June Covestro confirmed it had started “concrete negotiations” over a $12.5 billion offer, with €62 ($67) a share as a starting point for the negotiations.

Covestro, which makes plastics and chemicals for construction and engineering, said at the time it was opening its books to Adnoc because an agreement on core aspects including Covestro’s growth strategy may be reached.

• Adnoc’s acquisition strategy could lead to something major
• Adnoc makes final bid for German chemicals maker
• Covestro begins formal talks with Adnoc on its $12bn bid

A spokesperson for Covestro said the company had read the FT report with interest and did not comment further. Adnoc declined to comment.

Covestro generated sales of €14.4 billion in 2023. At the end of that year the company had 48 production sites worldwide and employed approximately 17,500 people.