Abu Dhabi National Oil Company (ADNOC) has agreed to buy German chemicals producer Covestro for 14.7 billion euros ($16.4 billion).

The Abu Dhabi state oil giant said it would launch a 62 euros-per-share public takeover offer for all shares in Covestro.

ADNOC would also buy 1.17 billion euros worth of new Covestro shares from a 10% capital increase to improve funding.

Covestro is one of the world’s leading manufacturers of high-quality polymer materials and their components.

“Covestro brings unmatched expertise in high-tech specialty chemicals and materials, using advanced technologies including AI. This strategic partnership is a natural fit and aligns seamlessly with ADNOC’s ongoing smart growth and future proofing strategy and our vision to become a top 5 global chemicals company,”  Dr. Sultan Ahmed Al Jaber, ADNOC Managing Director and Group CEO, said.

Goldman Sachs and Perella Weinberg are acting as financial advisors to Covestro’s Board of Management on the transaction, with Linklaters acting as legal advisor.

For Covestro’s Supervisory Board, Rothschild & Co and Macquarie Capital are acting as financial advisors, and SZA Schilling, Zutt & Anschütz as legal advisors. 

(Writing by Seban Scaria; editing by Daniel Luiz)
(seban.scaria@lseg.com)