Abu Dhabi National Oil Company (ADNOC) is anticipated to submit a formal offer to purchase Covestro for about $15.9B (€14.4B), including debt, according to a report by the Financial Times on Wednesday.
After showing interest in the German chemical company for over a year, ADNOC secured Covestro’s agreement in June to share more information and engage in detailed discussions. This was based on an improved indicative bid of €11.7B or €62 per share.
Covestro, which produces plastics and chemicals for the construction and engineering sectors, stated that it opened its books to ADNOC as an agreement on key aspects, such as its growth strategy, seemed achievable.
Covestro did not provide immediate comments when contacted by Reuters early on Wednesday. ADNOC also did not respond promptly to an emailed request for comment.