Blockbuster! Oil giant ADNOC makes takeover offer for Covestro!

ABU Dhabi National Oil Company (ADNOC) has made a preliminary takeover offer for German chemical producer Covestro AG, according to people familiar with the matter.

The state-backed energy company has made initial contact with Covestro officials in Lecusen to express its interest in a deal. Covestro shares have risen about 7% this year, giving it a market value of 7.5 billion euros ($8.2 billion).

The talks are at an early stage and there is no certainty that ADNOC will decide to proceed with the acquisition, the people said. A representative for ADNOC declined to comment on the deal, while a Covestro spokesman was not immediately available for comment.

ABU Dhabi National Oil Company, which supplies nearly all of OPEC member United Arab Emirates' oil, plans to invest $150 billion to expand its gas, chemicals and clean energy businesses around the world. It is part of a push by Persian Gulf oil producers to diversify their oil sales to grab the market from countries phasing out transport fuels such as gasoline and diesel.

Last year, ABU Dhabi National Oil Company bought a stake worth about 3.9 billion euros in Austria's OMV AG to increase its exposure to chemical production. It also has a 25 percent stake in Austrian chemical and plastics maker Borealis AG, 75 percent of which is owned by OMV. In May, ABU Dhabi National Oil Company partnered with Apollo Global Management. Teamed up to bid for a controlling stake in Brazilian petrochemical producer Braskem SA.