Sector News

ADNOC mulls raising Covestro bid to $12.6 billion to spur talks – sources

August 19, 2023
Energy & Chemical Value Chain

Abu Dhabi National Oil Co (ADNOC) has verbally signalled to Covestro (1COV.DE) that it could raise its informal offer to 60 euros per share if the German plastics and chemicals maker agrees to enter formal talks, two people familiar with the matter told Reuters.

This would boost the oil giant’s non-binding bid to about 11.6 billion euros ($12.63 billion), the people said.

The indication of a raised offer is, however, not in writing, the people cautioned, adding that Covestro will take time to consider any next steps.

ADNOC last raised its informal offer to 57 euros per share in July. Considerations are still in progress and no final decision has yet been made, the people said, speaking on condition of anonymity.

Covestro and ADNOC declined to comment.

Covestro shares jumped about 4.2% in a volume spike after Bloomberg News first reported that ADNOC was prepared to sweeten its offer.

An offer at 60 euros per share would represent a premium of around 29% to Covestro’s closing share price on Friday.

ADNOC is separately in talks with Austria’s OMV (OMVV.VI) regarding a possible merger of two companies backed by them to form a business worth more than $30 billion.

Earlier in August, Covestro reported a 21% fall in revenues to 3.7 billion euros in the second quarter. It forecast no improvement in demand this year and expects annual core profit at the lower end of its range as customers continue to de-stock amid high inflation.

Like other firms in Germany’s chemicals sector, the producer of foam chemicals used in mattresses, car seats and insulation for buildings is facing a substantial drop in order volumes.

($1 = 0.9184 euros)

By Emma-Victoria Farr and Maha El Dahan

Source: reuters.com

comments closed

Related News

June 22, 2024

Vynova announces R&D programme on PVC recycling technologies

Energy & Chemical Value Chain

Vynova announced the launch of a research & development programme to further advance PVC recycling and help the PVC value chain accelerate towards circularity. Vynova’s innovation efforts focus on technologies to remove heavy metals from dissolved rigid post-consumer PVC waste such as used window profiles or pipes.

June 22, 2024

Actylis appoints Scott Thomson as CEO

Energy & Chemical Value Chain

Actylis, a global manufacturer and sourcing expert of critical materials and performance ingredients for the life sciences and specialty chemicals markets formed in 2022, appointed Scott Thomson as new Chief Executive Officer. Scott Thomson, who succeeds Gilles Cottier at the helm of the Port Washington, NY-based CDMO, has a three-decade track record in the pharmaceutical and chemical industries.

June 22, 2024

ADM and Bayer expand regenerative agriculture partnership

Energy & Chemical Value Chain

ADM and Bayer have announced an extension of their regenerative agriculture collaboration, working with farmers to lower carbon emissions across Europe. The companies embarked on a feasibility study last year to evaluate regenerative agriculture practices’ impact on curbing carbon emissions, increasing biodiversity and improving soil health.

How can we help you?

We're easy to reach