Abu Dhabi National Oil Company (ADNOC) has made a new offer of around €11bn ($12.4bn) for the acquisition of Covestro, reported Bloomberg, citing sources.

The new offer values the German chemical company at approximately €57 per share, up from the initial informal offering of roughly €55, the sources said. 

ADNOC, which is backed by the United Arab Emirates (UAE) Government, has expressed faith in Covestro’s management and strategy, they added.

Last month, Covestro rejected the UAE energy giant’s offer, saying it was too low. 

Covestro, which is based in Leverkusen, has also expressed concerns about ADNOC’s plans for its specialties operations.

According to the sources, ADNOC has made an effort to allay Covestro’s worries about its proposal, particularly on how it would assist the management of the German company in expanding the specialty chemical activities.

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If the companies start talks, there may be room for ADNOC’s bid to rise further. 

It is not clear how Covestro will respond to ADNOC’s revised offer. 

Covestro and ADNOC representatives declined to comment on the development. 

ADNOC is looking to invest $150bn to increase its capacity for producing crude, natural gas and chemicals.

Last week, the Abu Dhabi energy major entered formal discussions with OMV, an Austrian energy company, to create a petrochemical giant worth more than $30bn. 

ADNOC and OMV will create the new company by merging petrochemical businesses Borouge and Borealis.