Abu Dhabi National Oil Company (ADNOC Group) has made a bold move, offering USD 16.3 billion to acquire Germany’s Covestro, a key player in the global chemical industry.
According to FT, the agreement marks “the largest cash deal in the chemical industry, and the first big takeover of a Dax 40 company by a Gulf state”.
His Excellency Dr. Sultan Ahmed Al Jaber, ADNOC Managing Director and Group CEO, said: “As a global leader and industrial pioneer in chemicals, Covestro brings unmatched expertise in high-tech specialty chemicals and materials, using advanced technologies including AI.”
He added: “Our aligned strategies uniquely position us to meet the growing global demand for energy and chemical products, while accelerating the transition to a circular economy.”
Dr. Markus Steilemann, CEO of Covestro, said: “We are convinced that the agreement reached with ADNOC International is in the best interest of Covestro, our employees, our shareholders, and all other stakeholders.”
He added: “With ADNOC International’s support, we will have an even stronger foundation for sustainable growth in highly attractive sectors and can make an even greater contribution to the green transformation.”
This proposed strategic acquisition would be a significant step forward in strengthening the GCC’s position as a global leader in the chemical and petrochemical sectors.
By aligning with global mega trends such as innovation and advanced technologies, ADNOC Group is shaping the future of performance materials and specialty chemicals.
GPCA looks forward to seeing the positive impact this partnership will have on the industry’s growth and diversification.
To learn more, visit: www.adnoc.ae