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Covestro enters open-ended talks with Abu Dhabi's Adnoc on potential acquisition

September, 8, 2023 - The Board of Management of Covestro AG has decided, in view of the interest in Covestro expressed by Abu Dhabi National Oil Company (Adnoc), to enter into open-ended discussions with Adnoc which could result in it being acquired by the state-owned oil company of the United Arab Emirates. Whether, in which form and, if applicable, at which conditions an agreement between the parties will be reached is open and will depend on the course of the forthcoming discussions.

Formerly named Bayer MaterialScience, Covestro generated sales of EUR 18 billion in fiscal 2022. At the end of 2022, the company had 50 production sites worldwide and employed approximately 18,000 people (calculated as full-time equivalents). Covestro manufactures and sells Polycarbonate plastics and Urethane systems as well as Coatings and Adhesives within the main business divisions of the company.

Dr. Markus Steilemann, Chief Executive Officer of Covestro, said: “The interest of Adnoc in our company underlines our strong position as one of the world’s leading manufacturers of high-quality polymer materials and as a leader in the shift towards a circular economy. Beyond current headwinds in our industry, we are optimally positioned to unlock significant long-term value in highly attractive industries underpinned by strong secular growth trends. Regardless of the talks with Adnoc, we will remain fully focused on pursuing our successful “Sustainable Future” strategy in order to unfold our full potential and further drive the transformation towards the circular economy.”

Other current initiatives of ADNOC to expand its business worldwide include talks with Austrian OMV oil giant to merge ADNOC-majority-owned Borouge and OMV-majority-owned Borealis. The Abu Dhabi oil company is also involved in negotiations to acquire a stake in the Brazilian petrochemical company Braskem.

Any agreement between Covestro and ADNOC would, in addition to mutual consent on the commercial and legal transaction parameters, require the approval of the respective boards of the parties and the approval of the competent authorities.

Covestro says it presently does not intend to comment on this matter any further unless and until changed circumstances or events require publication by Covestro to comply with applicable disclosure rules.

Source: Covestro