Adnoc to buy Covestro in €11.7bn deal

1st Oct 2024 08:54

(Sharecast News) - Covestro shares sparked on Tuesday after the German chemicals firm agreed to be bought by Abu Dhabi's state-owned oil firm Adnoc for about €11.7bn.

Under the terms of the agreement, Adnoc will pay €62.00 per share, which is a 54% premium to the unaffected share price, prior to any media coverage of a potential deal.

Covestro chief executive Dr. Markus Steilemann said: "We are convinced that the agreement reached today with Adnoc International is in the best interest of Covestro, our employees, our shareholders, and all other stakeholders.

"With Adnoc International's support, we will have an even stronger foundation for sustainable growth in highly attractive sectors and can make an even greater contribution to the green transformation. We regard Adnoc International as a financially strong and long-term oriented partner with whom we will further drive our successful 'Sustainable Future' strategy in all market conditions. Our complementary growth strategies, shared commitment to advanced technologies, innovation and sustainability are key cornerstones of our partnership."

At 1330 BST, Covestro shares were up 3.9% at €58.10.