German chemicals firm Covestro accepts €12 bln takeover bid from UAE's ADNOC

German chemicals manufacturer Covestro announced on Tuesday that it has accepted a takeover bid from the UAE state energy company, Abu Dhabi National Oil Company (ADNOC).

This move comes as Europe's largest economy faces significant challenges, particularly in the chemicals sector, which has been impacted by soaring energy costs following Russia's invasion of Ukraine in 2022, News.Az reports, citing foreign media.

The deal valued Covestro, a maker of plastics, at some 12 billion euros ($13.3 billion), the German group said in a statement.

Under the terms of the agreement, valid until the end of 2028, the Abu Dhabi National Oil Company (ADNOC) will make an offer for all remaining Covestro stock at a price of 62 euros per share.

The state energy company of the United Arab Emirates will also inject around 1.2 billion euros into the chemicals firm through the issuance of new shares, once the deal is completed.

With ADNOC onboard, Covestro would have "an even stronger foundation for sustainable growth", the German group's CEO Markus Steilemann said in a statement.

ADNOC was a "financially strong and long-term oriented partner", Steilemann said.

The takeover offer was subject to a minimum acceptance threshold of "50 percent plus one share", as well as regulatory controls, Covestro said.

News.Az