Germany – ADNOC is acquiring Covestro. The acquisition had been in the air for some time. A year ago, the German chemical company confirmed that it was in talks with the party from the United Arab Emirates. Concrete negotiations began in June. Today the parties announce that an agreement has been reached.
According to the agreement, ADNOC will pay 62 euros per share. In total, the transaction amount comes to 1.17 billion euros. Markus Steilemann, CEO of Covestro says the company is convinced that the acquisition is the best option for employees, shareholders and other stakeholders. ADNOC will continue Covestro’s ‘Sustainable Future’.
ADNOC’s CEO, Sultan Ahmed Al Jaber states that Covestro’s operations fit perfectly with ADNOC’s strategy to grow and be among the top five global chemical companies.
According to the agreement, the current company structure and business activities will remain in place at least until 2028. The parties also explicitly write that existing labor agreements and collective agreements with unions are recognized. ADNOC and Covestro underline that there are no plans to sell, close or significantly reorganize business units after completion of the acquisition. A name change is also not on the agenda.
Covestro was created in 2015 as a spin-off from Bayer. Bayer already brought the MaterialScience division into an autonomous entity in 2004. In 2015, this became Covestro.
