Adnoc, the oil giant of Abu Dhabi, he put on the plate 14,7 billion euros to buy Covestro, the German chemical producer. An operation that marks the largest acquisition ever made in Europe by a Middle Eastern investor. This move is not only record-breaking, but also aims at an ambitious goal: to reduce Abu Dhabi's dependence on oil and push the country towards a energy transition more sustainable.
The news has given wings to the title of Covestro which gains more than 3,5%.
Covestro: Adnoc offers 62 euros per share
Adnoc to launch avoluntary public purchase offer a € 62 per share, valuing Covestro – once part of Bayer – at around 11,7 billion euros. This represents a premium of 54% over Covestro's closing share price in June. But it doesn't end there: Adnoc will also participate in a increase of capital, purchasing €1,17 billion in new shares, to facilitate the financing of the entire operation. The transaction will be entirely in cash but is subject to minimum subscription levels of 50% plus one of the capital.
According to a separate statement from the Abu Dhabi oil giant, the acquisition is part of the strategy international of Adnoc. Led by the CEO Sultan Al Jaber, the company aims to become a top five global player in the chemicals sector. In recent months, Adnoc has already acquired strategic stakes in several gas projects in the United States and Mozambique, as well as a 24,9% stake in Austrian chemicals company Omv and a majority position in ammonia producer Fertiglobe.
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Covestro CEO, Markus Steileman, who is also president of the German Chemical Industry Association, highlighted the challenges facing the global and German chemical industry, acknowledging that these challenges will not go away with the new owner. But he expressed optimism, calling the deal “unprecedented” and an opportunity to “accelerate the implementation of the company’s sustainable strategy,” thanks to a strong partner like Adnoc.
“We are thrilled to acquire Covestro, a global leader and industrial pioneer in the chemicals sector, which brings with it unmatched expertise in high-tech chemicals and materials, using advanced technologies such as artificial intelligence,” said Sultan Ahmed al Jaber.
