Germany’s Covestro rejected takeover proposal from ADNOC Abu Dhabi National Oil Company, according to Bloomberg.
Abu Dhabi National Oil Company (ADNOC) has recently offered German plastics and Chemicals maker Covestro AG a takeover proposal for US$10.9 billion, according to media reports.
A proposal for Covestro would reflect the expansion of other Middle Eastern energy and petrochemical players into European materials and plastics businesses.
The takeover strategy was to help energy giant ADNOC access good resources to more advanced materials needed in electric vehicles, thermal insulation for buildings as well as coatings, adhesives, and engineering plastics, Reuters reported.
The Abu Dhabi-based company’s strategy is to enter into new energy, low-carbon fuels, such as ammonia and hydrogen, and liquefied natural gas and chemicals. Last December, ADN OC purchased 24.9 per cent of Austrian oil and gas group OMV, helping increase the company’s holding in European and Petrochemicals maker Borealis and Abu Dhabi-listed petrochemicals company Borouge.
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