German chemicals manufacturer Covestro has confirmed that it is entering into discussions with Abu Dhabi National Oil Co. (ADNOC) regarding a potential takeover, ending weeks of speculation surrounding the two companies.
The announcement from Covestro came after Bloomberg reported that its supervisory board was meeting to consider the option of initiating formal talks with the state-owned Emirati oil giant.
Following the report, Covestro’s shares saw a significant increase of over 10% in Friday afternoon trading. It was suggested that ADNOC valued the company at 11.6 billion euros ($12.41 billion), while Covestro’s market capitalization currently stands at EUR9.95 billion.
Covestro released a statement saying, “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.”
The potential takeover of Covestro by ADNOC signals a significant development for the German chemicals manufacturer. As discussions progress, the outcome remains uncertain, but both parties are poised to explore the possibilities further.