The Abu Dhabi National Oil Company (ADNOC) has made a $16B takeover bid for German chemicals giant Covestro.
This acquisition would mark ADNOC’s largest purchase to date and represents a significant long-term investment in its industrial and chemical future.
Today, ADNOC announced that ADNOC International has entered into an investment agreement with Covestro and has launched a voluntary public offer to shareholders at AED 254 ($69) per share.
Covestro is a global leader in high-tech specialty chemicals, known for its innovative technologies that support decarbonisation and the circular economy. The company serves over 8,500 international business customers and operates 48 production sites and 13 research and development facilities worldwide.
Covestro offers more than 10,700 specialty solutions, including advanced products for semiconductors, plastics, and essential materials for data centres, contributing to the growth of artificial intelligence (AI).
This landmark agreement aligns with ADNOC’s international growth strategy focused on gas, LNG, chemicals, and low-carbon energies. If successful, the acquisition aims to position ADNOC among the top five global chemicals players.
Dr. Sultan Ahmed Al Jaber, ADNOC’s Managing Director, emphasised that Covestro’s expertise in high-tech specialty chemicals fits perfectly with ADNOC’s strategy for smart growth and diversification.
The demand for petrochemicals is expected to rise by 2% annually until 2050, with the chemicals market projected to double, offering attractive economic returns.
Dr. Markus Steilemann, CEO of Covestro, expressed confidence that the partnership with ADNOC would enhance sustainable growth and contribute significantly to green transformation.
The takeover offer requires a minimum acceptance threshold of 50% plus one share of Covestro’s issued capital, along with necessary regulatory approvals.
