Covestro shareholders accept ADNOC's XRG takeover offer (updated)
19/12/2024 07:49
(Updates with background throughout)
By Yousef Saba
DUBAI, Dec 19 (Reuters) - XRG, the international
investments arm of Abu Dhabi National Oil Company (ADNOC), said
on Thursday it will become the new majority shareholder in
Covestro 1COVG.DE after the German chemicals maker's
shareholders approved a takeover offer.
Shares tendered and bought by XRG are equivalent to 91.32%
of Covestro's total outstanding shares, XRG said. The takeover
still needs to meet regulatory conditions and is expected to
close in the second half of next year.
ADNOC struck a deal in October to buy Covestro for 14.7
billion euros ($15.28 billion), including debt, for what will be
its biggest ever takeover.
The deal is the largest recorded foreign acquisition by a
Gulf company, as the hydrocarbon-rich region seeks to accelerate
investments to reduce dependence on oil amid the global
transition to cleaner energy.
It is the second biggest takeover by a Middle Eastern firm
after Israeli company Teva Pharmaceuticals' purchase of
Allergan's generic drugs business in 2015, according to Dealogic
data.
"Today's significant milestone marks the first major
transformational investment for XRG in chemicals, accelerating
our ambition to become a top five global chemicals player," XRG
Executive Chairman Sultan Al Jaber, also ADNOC's group chief
executive, said in a statement.
ADNOC has big ambitions in petrochemicals, which it sees as
key to its future growth along with gas, liquefied natural gas
and renewable energy.
The state oil giant has done a string of deals in gas and
chemicals this year. Last month, it said it was creating XRG to
focus on overseas investments in lower-carbon energy including
gas and chemicals, saying it was valued at more than $80
billion.
XRG's board, announced last week, includes Blackstone's Jon
Gray and former BP boss Bernard Looney.
XRG closed a deal with BP last week for a new natural gas
venture in Egypt, with the British oil major holding 51% and XRG
49%.
($1 = 0.9622 euros)
(Reporting by Yousef Saba
Editing by Mark Potter)
((Yousef.Saba@thomsonreuters.com; +971562166204; https://x.com/YousefSaba))