Covestro Shares Surge as EU Approval for ADNOC Takeover Nears
The Covestro share has risen by 6.23 percent this year. Recent developments indicate that ADNOC's concessions may lead to EU approval of its acquisition of Covestro by December 2, 2025.
ADNOC has agreed to amend its articles of association to satisfy EU overseers. This includes removing the unlimited state guarantee and protecting Covestro's intellectual property in Europe. These adjustments are seen as 'incrementally positive developments' by analysts, increasing the likelihood of a successful takeover.
The originally planned €1.2 billion capital contribution will be converted into a shareholder loan. This compromise addresses regulatory requirements and facilitates the deal. The deadline for the takeover is December 2nd, with intense negotiations ongoing between the parties involved.
ADNOC's significant concessions aim to address EU competition authority's concerns regarding the Covestro takeover. With the deadline looming, the revised terms may pave the way for EU approval, as analysts now expect a positive outcome.
