ADNOC Approaches Covestro AG with Takeover Offer
Informed sources said Tuesday that the Abu Dhabi National Oil Company (ADNOC) has approached German plastics and chemical industry Covestro AG with a takeover offer.
Details on the proposed terms of the deal and how Covestro, which has a market value of 7.8 billion euros ($8.5 billion), will react, were not available. The sources asked not to be identified as the matter is confidential, Reuters reported.
ADNOC has not yet responded to requests for comment, and Covestro declined to comment.
Covestro, which makes transparent polycarbonate and insulating chemicals, released earnings forecasts in April that reassured markets that it was up and restarted its share buyback program.
The company’s shares rose 10% by 12:45 GMT.
What We Know
According to unnamed sources, the Abu Dhabi National Oil Company (ADNOC) has approached Covestro AG with a takeover offer. Covestro, a German plastics and chemical company, currently has a market value of 7.8 billion euros ($8.5 billion). The details of the proposed deal and Covestro’s response are unknown at this time.
ADNOC and Covestro’s Response
ADNOC has not yet responded to requests for comment regarding the proposed takeover. Covestro declined to comment on the matter.
Covestro’s Recent Earnings Forecast
In April, Covestro released earnings forecasts that reassured markets and restarted its share buyback program. The company specializes in producing transparent polycarbonate and insulating chemicals. Following news of the proposed takeover, Covestro’s shares rose 10% by 12:45 GMT.
