Covestro Stock: Arab Oil Giant Secures 70% Stake

The landscape of global chemical manufacturing is poised for a significant shift as Abu Dhabi's state-owned oil company Adnoc has successfully secured approximately 70 percent of Covestro's shares, substantially exceeding the minimum acceptance threshold of 50 percent plus one share. The acquisition offer, valuing the German plastics manufacturer at €62 per share, represents a total enterprise value of approximately €16 billion, including debt. This strategic move positions Adnoc's investment vehicle XRG closer to its ambitious goal of becoming one of the world's top five chemical companies.

Extended Acceptance Period

A second acceptance period has been initiated for remaining shareholders who haven't yet tendered their shares, running until December 16. While the majority stake has been secured, the complete transaction remains subject to various regulatory approvals worldwide, with the final closing process potentially extending beyond a year. The deal structure includes plans for a capital increase of approximately €1.2 billion, contributing to the overall transaction value.