After more than a year of pursuing the chemicals company, the UAE energy major made an improved €11.7 billion takeover bid. On Monday, Germany’s Covestro announced that it was stepping up talks with Adnoc.
Plastics and chemicals manufacturer Covestro said it would open 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.” Covestro produces materials for engineering and construction.
The discussions, which were formerly referred to as “open-ended,” will now be “concrete negotiations,” according to Covestro, which also announced that it would furnish Abu Dhabi National Oil Co. with due diligence data following its €62 per share offer.
According to those aware of the talks, that represented an increase from the previous €60. Covestro’s shares were up 6% to €54.3 at 1356 GMT. The company stated that talks would proceed “on time” and that an agreement was not guaranteed.
According to LSEG data, Union Investment is one of Covestro’s top ten shareholders. Arne Rautenberg, fund manager there, said, “We welcome the fact that Covestro is now negotiating with Adnoc.” However, in the eyes of investors, the offer price of €62 per share still needs to be improved.
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