ADNOC International Announces Voluntary Public Takeover Offer For Covestro To Enhance Chemicals Portfolio

ADNOC has announced a significant investment move by entering into an agreement with Covestro AG, a prominent player in the chemical industry. ADNOC International Limited has initiated a voluntary public takeover offer to all shareholders of Covestro, offering AED254 (€62) per share. This strategic acquisition aligns with ADNOC's international expansion goals, particularly in chemicals and low-carbon energies.

Covestro is renowned for its expertise in high-tech specialty chemicals, supporting decarbonisation and the circular economy. The company serves over 8,500 global business customers and operates 48 production sites worldwide. It also boasts 13 research and development facilities, enhancing its innovative capabilities.

Covestro's product range includes more than 10,700 specialty solutions used in semiconductors, plastics, performance materials, coatings, adhesives, and critical data center materials. These products support AI growth through thermal conductive solutions and advanced molding technologies. The company's offerings are integral to various industries, from electronics to automotive.

This acquisition is pivotal for ADNOC's ambition to become a top five global chemicals player. Covestro's specialty chemicals business complements ADNOC's growth strategy and aligns with the UAE's commitment to leadership in advanced technologies. The partnership will diversify ADNOC's chemical portfolio significantly.

Dr. Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology and ADNOC CEO, stated that Covestro brings unmatched expertise in high-tech specialty chemicals. He emphasised that this partnership aligns with ADNOC’s vision to become a leading global chemicals company while supporting the transition to a circular economy.

The demand for petrochemicals is projected to grow by 2% annually from 2024 to 2050. The chemicals market is expected to double by 2050, offering attractive economic returns. Covestro's products will facilitate AI integration into daily life through innovations like films for VR devices and digital technologies such as data science and machine learning.

Shared Commitment to Sustainability

Dr. Markus Steilemann, CEO of Covestro, expressed confidence in the agreement with ADNOC International. He highlighted that this partnership provides a stronger foundation for sustainable growth in attractive sectors and contributes significantly to the green transformation. Both companies share a commitment to advanced technologies and sustainability.

Originating from Germany’s industrial heartland, Covestro is a major producer of polyurethanes and polycarbonates essential for industrial applications globally. More than half of its revenues come from Asia-Pacific and North America regions.

The positive outlook for the chemical industry makes Covestro an appealing investment for ADNOC due to its leading facilities and technologies managed by an exceptional team. The takeover offer requires at least 50% plus one share acceptance of Covestro’s issued share capital along with regulatory approvals.

With inputs from WAM