ADNOC to Acquire Covestro in USD 15.9B-worth Deal

Abu Dhabi National Oil Company (ADNOC) is moving forward with a formal offer to acquire the German chemical giant Covestro in a deal valued at **$15.9 billion**, including debt. After more than a year of negotiations, ADNOC is poised to take a significant step toward this acquisition, marking a key development in its broader strategy to expand and diversify its portfolio beyond traditional energy sectors.

Initially, **Covestro** resisted the approach, but discussions deepened after ADNOC improved its bid to **€11.7 billion** (equivalent to €62 per share). This improved offer led to a review of Covestro’s financials and growth strategies, signaling a shift in Covestro's stance and increasing the likelihood of an agreement. Covestro is known for its production of high-performance polymers used in critical sectors such as construction, automotive, and electronics.

For **ADNOC**, acquiring Covestro represents a strategic move to diversify into **advanced materials** and **chemicals**, sectors that are set to play a pivotal role in the **global energy transition**. These materials are increasingly vital for sustainability initiatives, as industries worldwide seek eco-friendly solutions to reduce carbon footprints. By acquiring Covestro, ADNOC aims to strengthen its position in these key sectors while supporting its long-term growth ambitions.

The acquisition also fits with ADNOC’s push to expand its **downstream operations** and **industrial activities**, particularly in Europe. For Covestro, the influx of capital from ADNOC could help accelerate its investments in **sustainable technologies** and innovations, positioning the company to meet the rising global demand for environmentally friendly materials. This deal not only benefits both parties but also aligns with global sustainability goals.