ADNOC finalising due diligence on Covestro, sources say (updated)
28/08/2024 14:06
(Adds details, background in paragraphs 4-8)
By Emma-Victoria Farr
FRANKFURT, Aug 28 (Reuters) - Abu Dhabi National Oil
Company (ADNOC) is finalising due diligence for a takeover of
Covestro 1COV.DE in a deal that could reach 11.7 billion euros
($13 billion), two sources familiar with the matter told Reuters
on Wednesday.
An announcement could come in September as the process
enters its final phase, with a price of 62 euros per Covestro
share still on the table, the sources said.
Covestro and ADNOC declined to comment. Bloomberg first
reported the news on Wednesday.
Covestro shares rose as much as 5.7% to 56.90 euros,
reaching their highest level in almost three years.
The Leverkusen-based plastics company announced at the end
of June that it would enter into concrete negotiations with
ADNOC. After months of canvassing, the oil company announced a
possible offer of 62 euros per share, subject to due diligence.
Covestro finance chief Christian Baier told Reuters at the
end of July that there had been progress in the talks and that
the negotiations were continuing to be very constructive.
Covestro is the former plastics subsidiary of Bayer
BAYGn.DE , which the pharmaceutical and agricultural group took
public in 2015.
The company employs around 17,500 people worldwide, with
almost 7,000 in Germany. Covestro manufactures intermediate
products for the automotive, furniture, household appliance and
construction industries. Its products can be found in mattress
foam and car seats, as well as in wind turbine blades.
($1 = 0.9001 euros)
(Reporting by Emma-Victoria Farr in Frankfurt, additional
reporting by Patricia Weiss and Yousef Saba, editing by Jason
Neely and Mark Potter)
((emma-victoria.farr@thomsonreuters.com;))