Covestro enters into concrete negotiations with Adnoc on a potential transaction
Based on the open-ended discussions with Abu Dhabi National Oil Company (“Adnoc”) to date, the Board of Management of Covestro, after consultation with the Supervisory Board, has decided today to enter into concrete negotiations with Adnoc regarding a potential transaction and the possible conclusion of an investment agreement as well as to facilitate an appropriate exchange of company information to confirm assumptions (confirmatory due diligence).
In the view of the Board of Management, the discussions to date have shown that a common basic understanding with Adnoc on key issues of a potential transaction, including support for Covestro’s further growth strategy, can be achieved in principle.
The starting point for the negotiations is a potential offer price of EUR 62 per Covestro share that Adnoc has indicated to Covestro, which is subject, among other things, to the results of the confirmatory due diligence and agreement on the content of an investment agreement. “We have made good progress in our discussions with Adnoc. We have therefore decided to enter into concrete transaction negotiations with Adnoc,” says Markus Steilemann, CEO of Covestro.
Adnoc and Covestro both intend to proceed swiftly with the negotiations on a potential transaction and the confirmatory due diligence. At this time, there is no certainty that the upcoming negotiations will result in an agreement. There is also no certainty regarding the final terms and conditions of such an agreement.
In addition to agreement on the commercial and legal transaction parameters, a possible transaction would require, among other things, the approval of the respective bodies of the parties and clearance by the relevant authorities. In light of the current developments, the Capital Markets Day planned for 27 June 2024 has been postponed until further notice.
