The UAE energy major made an improved €11.7 billion takeover bid after more than a year of pursuing the chemicals company. Germany’s Covestro announced on Monday that it was stepping up talks with Adnoc.
Made of chemicals and plastics for the building and engineering industries, Covestro announced that it was opening its books to Adnoc and thought the two parties could “generally reach a common understanding regarding core aspects of a possible transaction including support for Covestro’s further growth strategy.
After making an offer of €62 per share, Covestro says it will give Abu Dhabi National Oil Co. access to due diligence data. The talks, previously referred to as open-ended, will now be “concrete negotiations.” Those who knew the talks had stated that was an increase from the previous €60.
6% higher at €54.3 at 1356 GMT were shares of Covestro, which stated that negotiations would continue “on time” and that an agreement was not guaranteed.
Fund manager Arne Rautenberg of Union Investment, which LSEG data indicates is among Covestro’s top-10 shareholders, stated, “We welcome the fact that Covestro is now negotiating with Adnoc. However, investors still feel that the €62 per share offer price could be better.
Also Read:
UAE and Czech Republic’s Economic ties are Improving.
The Federal Tax Authority Advises Taxpayers to Register in Order to Avoid Penalties.
