Covestro's association with ADNOC is being terminated.
Title: The Düsseldorf Deal: Adnoc's Imminent Mega-Acquisition of Covestro
Subtitle: ADNOC moves closer to securing the plastics giant as they approach the final stretch with mere regulatory hurdles to clear.
Adnoc, the Arab oil titan, is on the brink of completing its multi-billion euro acquisition of Covestro, the Leverkusen-based plastics powerhouse. According to Adnoc's statements, they've snagged 91.3% of shares, setting the stage for a second-half-of-next-year closure.
The deal, including debt and a planned capital increase, is estimated to be worth an impressive 16 billion euros. After months of charms, Adnoc sealed the deal with Covestro early October, offering a tantalizing 62 euros per share for the DAX-listed company. Current shares swing at 57 euros.
"A significant milestone"
Khaled Salmeen, Adnoc's Executive Director for Downstream and Trade, shared his enthusiasm with Bloomberg Television, stating, "This business was a significant milestone for us." However, several substantial regulatory approvals are still needed before the transaction can be officially inked.
Smooth(er) Sailing Ahead?
The deal's progress looks promising with the European Commission granting unconditional EU antitrust approval, as there's no overlapping between ADNOC and Covestro's activities[1][2][3]. Other approvals, like those from South African and Indian competition watchdogs, have already been granted without any conditions[1].
However, Adnoc is yet to secure EU Foreign Subsidies Regulation (FSR) approval, focusing on fair foreign aid[1].
Timeline for Closure
Anticipations point towards the acquisition closing in the second half of 2025, with all necessary approvals expected to be received by the long-stop deadline of December 2, 2025[1][2]. It's a waiting (and working) game until then!
The Düsseldorf Deal's progression seems to be well underway, with Adnoc's focus shifting towards securing the European Union Foreign Subsidies Regulation (FSR) approval. Once received, the mega-acquisition of Covestro, worth an estimated 16 billion euros, is anticipated to close in the second half of 2025. This acquisition, significant for the industry, finance, and business sectors, will further expand Adnoc's interests in the plastics industry.
