German chemical substances group Covestro mentioned Tuesday it had accepted a takeover bid from the United Arab Emirates (UAE) state vitality big ADNOC, valuing the plastics maker at 12 billion euros ($13.3 billion) in a serious deal for the trade that got here after greater than a 12 months of talks.
The settlement signed between the 2 teams “stipulates that the bidder will make a public takeover offer for all outstanding shares of Covestro for 62.00 euro per share,” Covestro mentioned in a press release.
The takeover provide by the Abu Dhabi National Oil Company (ADNOC) had a “minimum acceptance rate of 50% plus one share,” Covestro mentioned.
Covestro, based mostly in Leverkusen and with experience in chemical recycling, has been a key goal for ADNOC because it appears to diversify its operations.
It comes because the German chemical substances trade has been gripped by disaster for the reason that Russian invasion of Ukraine, which noticed provides of pure gasoline to Germany slashed and despatched vitality costs hovering.
The deal stays topic to a set of “closing conditions, including merger control, foreign investment control and EU foreign subsidies clearances,” the assertion mentioned.
The German group mentioned it “welcomes and supports the bidder’s announced takeover offer” and would, in all chance, advocate shareholders settle for the phrases of the deal.
The takeover talks between the 2 events have progressed steadily since they first got here to mild in September final 12 months.
State oil agency ADNOC is headed by Sultan Al Jaber, who additionally served because the president of the COP28 local weather talks in Dubai final 12 months.
Source: www.dailysabah.com