Abu Dhabi’s state-owned oil company, ADNOC, has decided to a agreement to buy the company German of chemical products Covestro, which was part of the Bayer group, for 14.7 billion euros ($16.4 billion). The CEO of Covestro, Markus Steilemann, claims that this is a “unique agreement” between a strategic investor from the Middle East and a European country, tells News.ro.
ADNOC, short for Abu Dhabi National Oil Company, will launch a voluntary public takeover of 62 euros per share, which means an equity value for Covestro of about 11.7 billion euros and represents a premium of about 54% to the closing price of Covestro shares. on June 19, Covestro said in a statement.
Covestro shares rose 3.7% after the news.
The deal represents an enterprise value of €14.7 billion, ADNOC said in a separate statement. She said that the transaction is at the heart of the company’s international growth strategy, to become one of the five best players in the global chemical industry.
As a global leader and industry pioneer in chemicals, Covestro provides unparalleled expertise in chemicals and high-tech specialty products using advanced technologies, including AI,” said Sultan Ahmed al-Jaber, CEO of the Group and Managing Director of ADNOC.
Covestro, a subsidiary of Bayer, manufactures polymeric materials for construction and engineering processes. Its products are used in sectors such as sports, telecommunications, as well as the chemical industry.
As part of the transaction, ADNOC signed an investment agreement in which it committed to provide additional funding by purchasing €1.17 billion worth of new Covestro shares from a capital increase.
A “unique” contract.
The agreement followed “intense” and “very constructive” discussions between the two parties, Covestro CEO Markus Steilemann told CNBC on Tuesday.
“This is, to my knowledge at least, the biggest deal that is going to happen, perhaps, between a strategic investor from the Middle East and a German company listed on the DAX. This is unique, which means we put quality ahead of time,” said Steilemann.
Steilemann, who is also chairman of the German Chemical Industry Association, noted the challenges facing the global and German chemical sector and recognized that these negative aspects will not disappear now that the owner new at the company.
“I believe that together with a stronger partner, we can accelerate the implementation of our sustainable future strategy in all general economic conditions and, from this perspective, I’m tired and, at the same time, happy that I reached this point”, said the CEO. CEO.
2024-10-02 04:43:21
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