Abu Dhabi’s national oil company, ADNOC, is poised to present a formal $15.9 billion (14.4 billion euros) acquisition offer for Germany’s chemical giant Covestro. This potential deal, which includes debt, marks a significant move for ADNOC, a major oil producer in the UAE seeking to diversify its investments into chemicals and petrochemicals. The company has been engaged with Covestro for over a year.
Should Covestro accept the offer, it would represent one of the largest cash transactions in the chemical sector and the first acquisition of a DAX 40-listed company by a Gulf state enterprise. In June, Covestro’s board decided to enter concrete negotiations with ADNOC following a revised $12.9 billion (11.7 billion euros) proposal, allowing ADNOC access to Covestro’s financial details for due diligence.
ADNOC’s pursuit of Covestro began a year ago, and by September 2023, discussions had become more formalized. The company aims to enhance its international presence and secure future demand for its products, following the recent termination of negotiations to acquire a stake in Brazil’s Braskem from Novonor. ADNOC’s proposed offer for Braskem implied a valuation of $2.14 billion for Novonor’s stake.
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