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One step closer to Adnoc’s Covestro takeover: Abu Dhabi National Oil Company (Adnoc) is nearly done with due diligence on its EUR 11.7 bn (AED 47.82 bn) bid to acquire German chemicals company Covestro, with the oil giant poised to advance with the offer formally as early as September, Bloomberg reports, citing sources familiar with the matter. Adnoc has reportedly completed extensive site visits to Covestro’s facilities and found no major issues.
An update from Covestro is expected soon: The German firm’s CFO Christian Baier said last month that talks with Adnoc were progressing constructively, with an update on the acquisition bid expected “relatively soon.”
What’s next? While due diligence is nearing completion, the takeover bid still awaits approval from senior Adnoc executives, a process that could extend for several more weeks, according to Bloomberg’s sources.
Market reax: Covestro shares surged 5.7% on the Frankfurt Stock Exchange yesterday, reaching EUR 56.9, their highest intraday level since January 2022.
REMEMBER- The Emirati state-owned oil company raised its takeover bid to EUR 11.7 bn, or EUR 62 (AED 253.1) per share, in June. Adnoc said this would be its final offer, after revising its bid three times during the talks, which have been ongoing for over a year. If the transaction goes through, it will be the biggest acquisition from a Middle Eastern buyer in Europe in 16 years.
