The deal is done! ADNOC acquires Covestro for $16.4 billion

Abu Dhabi National Oil Company (ADNOC) said on October 1 that it agreed to acquire Covestro for $16.4 billion.

The agreement stipulates, among other terms, that the acquirer will make a public takeover offer for all outstanding shares of Covestro at a price of 62.00 euros per share, which means that Covestro's equity value is approximately 11.7 billion euros, a premium of approximately 54% over the unaffected closing price on June 19, 2023, and a premium of 21% over the closing price on June 23, 2024.

In the investment agreement, ADNOC promised that Covestro will continue to be managed in the form of a joint-stock company and will not enter into any control and/or profit and loss transfer agreement with Covestro. In addition, there is no plan to sell, close or significantly reduce Covestro's business activities in the agreement, and it also promises to protect Covestro's technology and intellectual property.

Covestro said the agreement is in line with the interests of the group, employees, shareholders and other parties. The group regards Abu Dhabi National Oil Company as a financially strong and long-term partner and will further promote the successful "sustainable future" strategy with the company under all market conditions. The two companies' complementary growth strategies and their common commitment to advanced technology, innovation and sustainability are important cornerstones of the partnership between the two parties.

Sultan Ahmed Al Jaber, CEO of ADNOC, said: "As a global leader and industry pioneer in the chemical industry, Covestro has unparalleled expertise in high-tech specialty chemicals and materials using advanced technologies including artificial intelligence. This strategic cooperation is a perfect match and perfectly fits with ADNOC's continued smart growth and future-oriented strategy and its vision of becoming one of the world's top five chemical companies. This is a key step for both parties, reflecting our rigorous approach to investing in strategic assets that drive long-term value and unlock new growth opportunities, while strengthening our commitment to diversifying ADNOC's portfolio. Our coordinated strategy enables us to meet the world's growing demand for energy and chemical products while accelerating the transition to a circular economy."