The German plastics manufacturer has aroused the interest of Adnoc from Abu Dhabi.
(Photo: Covestro)
Dusseldorf, Frankfurt The German plastics manufacturer Covestro rejects a takeover by the Arab oil company Adnoc. The Dax group informed the state-owned company from Abu Dhabi, as it was said on Thursday in financial circles. The step was expected because Covestro had repeatedly emphasized that it wanted to retain its independence.
For strategic reasons as well as for the purchase price brought into play, Covestro currently sees no basis for talks with Adnoc. According to the circles, the Arabs are ready to pay 55 euros per share, which would correspond to a total volume of almost eleven billion euros. Covestro shares were listed slightly higher on Thursday at EUR 47.90.
It is still unclear whether Covestro has already received a concrete takeover bid from the Arabs. The Leverkusen group still does not comment on what is happening. In the case of concrete talks based on an existing offer, the company would have to contact the capital market with an ad hoc announcement.
The Bloomberg news agency quotes a letter from Covestro to the Arab group. After that, management expressed doubts as to whether Adnoc would be the best owner for a significant part of the Covestro business.
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 PCB, which is used in car headlights, electronics and medical technology. However, Covestro also has a sizeable portfolio in specialty chemicals, such as coatings.
Adnoc could increase the offer
On the financial market, it is expected that Adnoc will examine a higher purchase offer and then present it as a basis for negotiations with the Leverkusen group. Several analysts had already emphasized that only a price of more than 60 euros per share would be convincing.
In any case, 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.
In the long term, however, Adnoc also wants to secure expertise in chemical recycling and for the circular economy, in which materials are reused in the best possible way. Covestro is strong in the two important technologies for the future of chemical production.
More: These are the reasons why Covestro is so interesting for Adnoc