Abu Dhabi’s state-owned energy company, ADNOC, has reached a significant deal to acquire German chemicals manufacturer Covestro for 14.7 billion euros ($16.3 billion), including debt.
This marks ADNOC’s largest acquisition to date and one of the biggest foreign takeovers by a Gulf state, as the region shifts its focus away from oil towards cleaner energy.
The acquisition comes at a critical time for Germany, where foreign takeovers are under scrutiny. Commerzbank and the German government are currently trying to fend off interest from Italy’s UniCredit in the bank. However, ADNOC’s deal is set to strengthen its presence in the petrochemical sector, while also expanding its interests in gas and renewable energy.
Under the terms of the agreement, ADNOC will pay 62 euros per share in cash and assume approximately 3 billion euros of Covestro’s debt. The acquisition follows lengthy negotiations and highlights ADNOC’s strategic push to diversify its business.
Additionally, ADNOC will invest 1.17 billion euros in new shares of Covestro to support the company’s financial stability. Following news of the deal, Covestro’s shares rose by 3.7%, reaching a three-year high of 58 euros.
