62 euros per share
Oil company Adnoc wants to swallow Covestro – offer is available
October 1, 2024, 11:08 a.m
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Now the time has come: Covestro is to be taken over by Adnoc. The oil company has put an offer on the table for the former Bayer subsidiary. In total, the Abu Dhabi company wants to raise almost 15 billion euros for the DAX group.
After months of negotiations and examinations, the oil company Adnoc from Abu Dhabi now wants to officially take over the plastics specialist Covestro. The former Bayer subsidiary is valued at 14.7 billion euros including debt. Adnoc is offering 62 euros per share. The price had already been stated before the audit.
Upon completion of the transaction, Adnoc will subscribe to a capital increase from Covestro of ten percent amounting to 1.17 billion euros, according to the buyer’s statement. Adnoc will act as “a reliable, long-term and trustworthy partner” to Covestro. According to the information, Covestro welcomes and supports the takeover offer. Adnoc has been courting the company, which is listed on the German leading index DAX, since last summer. At the end of June, Covestro finally announced concrete negotiations.
At the end of 2015, Bayer listed its former Material Science plastics division under the name Covestro. The company is one of the world’s largest manufacturers of polymer materials used in various industries. The materials are an essential part of the development of coatings, adhesives, plastics and other products. They can be found in mattresses, car seats, but also in insulation or rotor blades of wind turbines.
Covestro had sales of 3.7 billion euros in the second quarter – slightly less than a year ago. However, the operating result (EBITDA) fell by almost 17 percent to 320 million euros. The company operates almost 50 production facilities worldwide and, according to its own information, employs around 18,000 people, almost 7,000 of them in Germany.
Adnoc, founded in 1971, is a major oil and gas producer. The company also maintains a network of crude oil refineries as well as trading and distribution activities and has expanded into areas such as hydrogen production. Recently, the company has focused on entering chemical production as a new source of revenue, with mixed success.