Covestro Shares Rise: ADNOC Launches €14.7 Billion Bid in Major Chemicals Deal
Acquiring German chemicals company Covestro for 14.7 billion euros ($16.4 billion) is what Abu Dhabi’s state-owned oil company, ADNOC, said on Tuesday. According to a statement from Covestro, ADNOC, also known as the Abu Dhabi National Oil Company, plans to begin a voluntary public buyout of the company for 62 euros per share. This suggests an equity value for Covestro of around 11.7 billion euros and offers a premium of about 54% over the company’s closing price on June 19. As of 10:09 a.m. London time, shares of Covestro were up 3.7%.
Covestro’s Global Growth Plan Boosted by ADNOC’s €14.7 Billion Buyout Deal
Formerly a part of Bayer, Covestro produces polymer compounds for use in engineering and construction. Its goods are utilized in the chemical industry as well as in industries like sports and telecommunications. The deal is essential to the company’s global expansion plan, which aims to make it one of the top five chemical companies, it was further said.
As a global leader and industrial pioneer in chemicals, Covestro brings unmatched expertise in high-tech specialty chemicals and materials, using advanced technologies including AI,
Sultan Ahmed al-Jaber, group CEO and managing director of ADNOC
ADNOC also committed to providing extra money by purchasing 1.17 billion euros worth of new Covestro shares through a capital increase in an investment agreement inked as part of the deal.
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