The EU antitrust regulator will decide by May 12 on ADNOC’s $17.2 billion offer to buy Covestro
The European Union’s (EU) competition regulator will decide by May 12 whether Abu Dhabi oil company ADNOC can buy the German chemical company Covestro for $17.2 billion (€15.9 billion).
Covestro Takeover Bid
According to a Reuters report, the competition authority in the European Union (which has 27 countries) will review the deal. It can either approve it, approve it with conditions, or start a deeper investigation that could last four months.
In October, ADNOC agreed to buy Covestro, offering $65.2 per share. This offer is 54% higher than Covestro’s closing stock price on June 19, 2024.
In December, ADNOC announced that by November 27, 70% of Covestro’s shareholders had accepted the offer, which was above the required minimum. ADNOC also extended the deadline for shareholders to accept the offer until December 16.
ADNOC said in December that the offer gives shareholders a great opportunity to gain significant value once the deal is completed.
As part of the deal, ADNOC will invest an extra $1.2 billion by buying new Covestro shares.
When companies outside the EU buy firms within the EU, they may be subject to the Foreign Subsidies Regulation. This rule helps prevent unfair financial support from foreign governments.
What to Expect
ADNOC, a state-owned company, expects the takeover to be finalized in the second half of 2025. This will be its biggest acquisition ever.
About Covestro
Covestro used to be part of Bayer. It makes plastic materials used in construction and engineering. The company supplies industries such as sports, telecommunications, and chemicals.
Related News
ADNOC and Austrian petrochemicals company OMV have decided to merge their shares in Borouge plc and Borealis AG. This will create a new global chemicals company called Borouge Group International.
The new company will then buy North American chemical producer NOVA Chemicals Corporation for $13.4 billion.
With this acquisition and the addition of Borouge 4, the value of Borouge Group International will rise to over $59.9 billion, making it the world’s largest producer of polyolefins (a type of plastic).
Published: 3rd April 2025
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