– ADNOC is preparing a formal offer to acquire Covestro, a German chemical company, for €14.4 billion ($15.9 billion), including debt, after over a year of negotiations.

– Covestro initially resisted but began in-depth talks after ADNOC improved its bid to €11.7 billion (€62 per share), reviewing financials and growth strategies.

– The acquisition supports ADNOC’s goal to diversify its energy portfolio and expand in advanced materials and chemicals, key sectors in the global energy transition.

Abu Dhabi National Oil Company (ADNOC) is poised to make a formal offer to acquire German chemical company Covestro for around USD 15.9 billion, including debt, as reported by the Financial Times.

ADNOC’s pursuit of Covestro has spanned over a year, with the company intensifying talks in June by presenting an improved bid of €11.7 billion or €62 per share.

Covestro, a major player in the production of high-tech polymers and chemicals for sectors such as construction, automotive, and electronics, initially resisted the approach. However, the improved offer prompted Covestro to engage in deeper discussions, including a review of its financials and long-term growth strategies, which could lead to an agreement.

ADNOC sees the acquisition as part of its strategy to diversify its energy portfolio by investing in advanced materials and chemicals, sectors that are expected to play a crucial role in the global energy transition and sustainability initiatives.

ADNOC’s bid aligns with its broader push to expand its downstream and industrial activities, especially in Europe, as part of its long-term growth plan. For Covestro, the acquisition could provide the capital necessary to support its ongoing innovation in sustainable and green technologies, positioning the company to meet rising global demand for eco-friendly materials.