The oil company shows strong interest in the Dax group Covestro.
(Photo: Reuters)
Frankfurt, Dusseldorf According to financial sources, the oil company Adnoc from Abu Dhabi is increasing its offer for the German plastics manufacturer Covestro. Adnoc is now offering around eleven billion euros, said people familiar with the transaction. The Bloomberg news agency had previously reported an increase in supply. The companies themselves did not want to comment on this when asked.
Adnoc stands for Abu Dhabi National Oil Co. According to financial circles, the state oil company is now trying to get the Dax group to negotiate with the new bid. The Leverkusen company had previously rejected takeover talks. In addition to strategic reasons, the crux of the matter was the purchase price.
According to the circles, Adnoc is also ensnaring the Covestro management in that the Abu Dhabi group is expressing its trust in the top management and signaling support for the company strategy.
Covestro shares are also reacting to the takeover rumours. The shares went up on Tuesday with a plus of more than 5.5 percent at 50.30 euros from the Frankfurt stock exchange. This made them the clear winners of the day among the Dax stocks.
After the first bid, Covestro wrote a letter to the Arab group. According to financial circles, the proposed assessment was not a basis for further talks.
In addition, the management had expressed doubts as to whether Adnoc would be the best owner for a significant part of the Covestro business. Covestro was not planning to look for other buyers, it said.
Analysts see opportunities from 60 euros per Covestro share
The Leverkusen-based company is one of the world leaders when it comes to plastic foams, such as those used in car seats, furniture and insulating materials. Then there is the transparent plastic polycarbonate, which is used in car headlights, electronics and medical technology. However, Covestro also has a sizeable portfolio in specialty chemicals, such as coatings.
However, the promised increase could not be enough for the former Bayer subsidiary. Several analysts had already emphasized that only a price of more than 60 euros per share would be convincing. According to financial circles, Adnoc got involved with 55 euros per share.
The interest of the state-owned company from Abu Dhabi is great. Among other things, the Arabs wanted to secure access to future technologies in chemistry. According to the circles, Adnoc is therefore currently looking for takeover objects in Europe.
In the short term, the Arabs are interested in manufacturing capacities in which the output of their huge petrochemical plants can be processed into higher-quality plastics, it said.
More: Covestro rejects takeover advances from Abu Dhabi