Leverkusen, Germany – Covestro’s board of management and supervisory board have given their support to Adnoc International’s takeover bid. The company first confirmed that discussions were under way in September 2023, and the two parties entered into concrete negotiations in June. The deal was finally announced at the start of October.
The two boards say they regard Adnoc as a “strong and long-term oriented partner” that will be able to drive forward the company’s Sustainable Future strategy. Adnoc has offered €62/share for the German company, and signed an investment agreement that runs until the end of 2028. It will invest more than €1bn in the business via the purchase of newly issued shares.
The agreement contains several commitments by Adnoc to maintain Covestro’s existing business activities, corporate governance and organisational structure. The current Covestro board of management will remain in place, and continue to be responsible for both operational management and the company’s strategic direction.
Covestro also confirmed that there are no plans to sell, close or significantly reduce Covestro’s business activities as part of the transaction. The investment agreement includes an undertaking by Adnoc not to initiate any such actions. There is also a commitment to protect Covestro’s technology and intellectual property. It will remain a publicly listed company.
