Covestro manufactures foam chemicals used in automobile seats, beds and insulation for buildings. Credit: nitpicker/Shutterstock.

ADNOC plans to increase its takeover bid for German chemical company Covestro, reported Bloomberg, citing sources. 

The Middle East oil and gas major is willing to offer concessions to start the extensive due diligence process.

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

In the coming days, ADNOC plans to make a new proposal priced at roughly €60 ($65.64) per share, the sources said, adding that it will value Covestro at around €11.3bn.

The United Arab Emirates state-owned company also intends to guarantee jobs for several years and invest roughly $8bn (Dh29.38bn) after the acquisition is closed.

Talks are still ongoing and ADNOC may decide to submit its updated bid in 2024.

See Also:

ADNOC and Covestro representatives declined to comment on the development. 

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Based in Leverkusen, Germany, Covestro manufactures foam chemicals used in automobile seats, beds and insulation for buildings.

In September this year, Covestro said it had entered open-ended talks with ADNOC.

The two companies began talking after ADNOC’s informal bids of €55 and €57 per share were rejected by Covestro, which said these were too low.

ADNOC’s efforts to acquire the German company form part of the energy company’s plan to diversify its operations away from oil.

Besides Covestro, ADNOC is in negotiations with Austrian energy company OMV and Braskem, a Brazilian petrochemical producer. 

Last week, reports emerged that ADNOC is close to reaching an agreement with OMV to merge their petrochemical businesses.

In July this year, ADNOC and OMV commenced talks to combine Vienna-based Borealis and Borouge, which is listed on the Abu Dhabi Securities Exchange, to form a new chemicals company potentially valued at $30bn.

ADNOC is also weighing the acquisition of European oil and gas company Wintershall Dea.