ÃÜÌÒAV enters into concrete negotiations with Adnoc regarding a potential transaction
Based on the open-ended talks held so far with Abu Dhabi National Oil ÃÜÌÒAV (?Adnoc¡°) the Board of Management of ÃÜÌÒAV ("ÃÜÌÒAV") after consultation with the Supervisory Board has today decided to enter into concrete negotiations with Adnoc regarding a potential transaction and the potential conclusion of an investment agreement as well as to allow for an adequate exchange of company information to confirm assumptions (confirmatory due diligence).
In the view of the Board of Management, the discussions so far have shown that ÃÜÌÒAV and Adnoc can generally reach a common understanding regarding core aspects of a possible transaction including support for ÃÜÌÒAV¡¯s further growth strategy.
Starting point for the negotiations is a possible offer price of € 62 per ÃÜÌÒAV share that Adnoc has indicated to ÃÜÌÒAV, 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. Therefore, we have decided to enter into concrete transaction negotiations with Adnoc¡±, said Markus Steilemann, CEO of ÃÜÌÒAV.
Adnoc and ÃÜÌÒAV both intend to proceed with the negotiations about a potential transaction and the confirmatory due diligence in a timely manner. At this time, there is no certainty whether the upcoming negotiations will lead to an agreement. There is also no certainty as to the final terms of any such agreement.
Any potential transaction would, in addition to mutual agreement on the commercial and legal transaction parameters, among other things, be subject to the approval of the respective boards of the parties and clearance by the competent authorities.
In light of the recent developments, the Capital Markets Day scheduled for June 27, 2024, will be postponed until further notice.
About ÃÜÌÒAV:
ÃÜÌÒAV is one of the world¡¯s leading manufacturers of high-quality polymer materials and their components. With its innovative products, processes and methods, the company helps enhance sustainability and the quality of life in many areas. ÃÜÌÒAV supplies customers around the world in key industries such as mobility, building and living, as well as the electrical and electronics sector. In addition, polymers from ÃÜÌÒAV are also used in sectors such as sports and leisure, telecommunications and health, as well as in the chemical industry itself.
The company is geared completely to the circular economy. In addition, ÃÜÌÒAV aims to achieve climate neutrality for its Scope 1 and Scope 2 emissions by 2035, and the Group¡¯s Scope 3 emissions are also set to be climate neutral by 2050. ÃÜÌÒAV generated sales of EUR 14.2 billion in fiscal year 2024. At the end of 2024, the company had 46 production sites worldwide and employed approximately 17,500 people (calculated as full-time equivalents).
Forward-Looking Statements
This news release may contain forward-looking statements based on current assumptions and forecasts made by ÃÜÌÒAV. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. These factors include those discussed in ÃÜÌÒAV¡¯s public reports which are available at www.covestro.com. The company assumes no liability whatsoever to update these forward-looking statements or to conform them to future events or developments.