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Covestro AG Enters Formal Negotiations with Adnoc

Covestro recently announced that the company has entered into concrete negotiations with Abu Dhabi National Oil Co. (Adnoc), including the exchange of company information. The move follows open-ended talks that the companies have held so far. The negotiations with Adnoc involve a potential transaction and the potential conclusion of an investment agreement. They also will allow for an adequate exchange of company information to confirm assumptions (confirmatory due diligence). 

Covestro stated that, in the view of the Board of Management, the discussions so far have shown that Covestro and Adnoc can generally reach a common understanding regarding core aspects of a possible transaction including support for Covestro’s further growth strategy. 

The starting point for the negotiations is a possible offer by Adnoc of a price of € 62 per Covestro share. The offer is subject, among other things, to the results of the confirmatory due diligence and agreement on the content of an investment agreement. 

“We have made good progress in our discussions with Adnoc. Therefore, we have decided to enter into concrete transaction negotiations with Adnoc,” said Markus Steilemann, CEO of Covestro. 

Adnoc and Covestro both intend to proceed with the negotiations about a potential transaction and the due diligence in a timely manner. Covestro stated that there is no certainty whether the upcoming negotiations will lead to an agreement. There is also no certainty as to the final terms of any such agreement. 

Any potential transaction would, in addition to mutual agreement on the commercial and legal transaction parameters, among other things, be subject to the approval of the respective boards of the parties and clearance by the competent authorities. 

Learn more about Covestro at www.covestro.com. Additional information about Adnoc is available at www.adnoc.ae

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