German chemicals firm Covestro has entered into “open-ended discussions” with Abu Dhabi state-energy giant Adnoc following the latter’s latest takeover bid, the firm confirmed on 8 September. Such a takeover in which a Gulf state-firm takes a major German industrial player private would be a landmark event, and will require significant safeguards to secure approval. The bid is a core element of Adnoc’s ambitious international expansion strategy, which is rapidly building momentum.
News first emerged that Adnoc had submitted a bid of around €50/share for Covestro in June, and it is understood that the offer has now been increased to around €60/share. This would value Covestro at approximately €11.5bn. Covestro specializes in standard polycarbonates, standard urethane components and base chemicals as well as more complex products including engineering plastics, coatings and adhesives, tailored urethanes, thermoplastic polyurethanes, specialty films and elastomers. (CONTINUED - 1077 WORDS)