Abu Dhabi’s state-owned oil company, Adnoc, announced Tuesday that it will acquire German chemicals producer Covestro AG in a €14.7 billion ($16.3 billion) deal. The move comes as the Gulf state seeks to reduce its reliance on oil while advancing its green energy goals.
Adnoc to acquire Covestro : Voluntary Public Takeover Offer
Adnoc said it has entered into an investment agreement with Covestro, offering shareholders €62 per share. This brings the total deal value to €14.7 billion, which includes €3 billion in debt. The offer aims to launch a voluntary public takeover of Covestro, furthering Adnoc’s ambition to become a global leader in the chemicals sector.
To facilitate the transaction, Adnoc has enlisted Freshfields Bruckhaus Deringer LLP as its legal adviser, while Covestro’s board of management is being advised by Linklaters LLP. German law firm SZA Schilling Zutt & Anschütz is representing Covestro’s supervisory board.
Strategic Move for Global Growth
The deal represents a significant strategic shift for Adnoc as it pivots away from traditional oil investments to build a robust presence in the chemical industry. Covestro, originally spun off from German pharmaceutical giant Bayer in 2015, will serve as the cornerstone of Adnoc’s materials and specialty chemicals division. Adnoc plans to invest further by purchasing 18.9 million new shares of Covestro for €1.17 billion, which will be funded through its existing cash reserves.
