Abu Dhabi National Oil Company (Adnoc) has offered more than $11bn to acquire global plastics and chemicals company Covestro, according to unconfirmed media reports.
Reuters and Bloomberg both reported on 20 June that Adnoc’s offer is worth more than €10bn ($10.9bn), based on the closing price of Covestro stock on 19 June.
Officials from Covestro declined to comment when approached by our sister publication Plastics News. Adnoc officials have also not given an official statement at this time.
Abu Dhabi-based Adnoc has been increasingly active in petrochemicals deals in 2023. In May, the state-owned business – which ranks as one of the world’s 10 largest oil and gas companies – joined private equity giant Apollo Global Management in an offer to buy Novonor's controlling share in materials-maker Braskem.
Braskem officials said at the time that they were “evaluating other possibilities”. Novonor's 38% stake in Braskem was worth about $1.6bn in early May.
In January, Adnoc acquired a 25% stake in materials business Borealis from Abu Dhabi-based Mubadala Investment. The remainder of Borealis is owned by Austrian oil and gas company OMV.
The 20 June Reuters story said that acquiring Covestro would give Adnoc access to more advanced materials for electric vehicles and thermal insulation for buildings, as well as coatings, adhesives and engineering plastics. A deal would also support Abu Dhabi’s plans to diversify its economy away from energy, the report said.
