Covestro Prepares for Formal Talks on $12 Billion Adnoc Bid - Bloomberg
Covestro AG’s supervisory board is meeting on Friday to discuss giving its blessing to formal deal talks with Abu Dhabi National Oil Co., people familiar with the matter said.
A decision to entertain Adnoc’s takeover approach would pave the way for management of the German chemical firm to begin detailed negotiations. It comes after weeks of discussions between the companies’ advisers over a potential deal that could value Covestro at €11.6 billion ($12.4 billion) or more.
Covestro shares rose as much as 11% on Friday. The stock was up 10% at 3:11 p.m. in Frankfurt, giving the company a market value of €10.2 billion.
State-backed Adnoc has signaled its willingness to fund roughly $8 billion in investments at Covestro after a deal is completed, a move that could help win over executives and labor representatives, the people said.
Adnoc verbally signaled to Covestro in mid-August that it’s willing to make a fresh written proposal of €11.6 billion, or €60 per share, if it would help get negotiations started, people familiar with the matter said at the time. That would improve on previous informal bids of €55 and €57 per share, which Covestro saw as too low.
In addition to price, Adnoc has been trying to address Covestro’s other concerns about a transaction, including how it would help the German company’s management develop the specialty chemical operations, Bloomberg News reported previously.
Deliberations are ongoing, and there’s no certainty they will lead to a transaction, the people said. Representatives for Covestro and Adnoc declined to comment.
Friday, 8 September 2023
US, #SaudiArabia, India discuss possible rail, port deal | Reuters
US, Saudi Arabia, India discuss possible rail, port deal | Reuters
The U.S., Saudi Arabia, India and other nations are discussing a possible infrastructure deal that could reconfigure trade between the Gulf and South Asia, linking Middle Eastern countries by railways and connecting to India by port, according to U.S. officials aware of the conversations.
The talks, which have also included the United Arab Emirates and Europe, may or may not yield a concrete result in time for an announcement on the sidelines of this week's Group of 20 (G20) leaders meeting, the people said.
The conversations have been underway for months but are fluid, one of the people said.
U.S. President Joe Biden is on his way to the G20 conference in New Delhi, India, where he is set to meet Indian Prime Minister Narendra Modi and may also have talks with Saudi Crown Prince Mohammed bin Salman.
The plans for a sweeping, multi-national ports and rail deal would come at a critical time. To counter China's Belt and Road global infrastructure push, Biden is pitching Washington as an alternative partner for and investor in developing countries at the G20, especially in the Indo-Pacific region.
The U.S., Saudi Arabia, India and other nations are discussing a possible infrastructure deal that could reconfigure trade between the Gulf and South Asia, linking Middle Eastern countries by railways and connecting to India by port, according to U.S. officials aware of the conversations.
The talks, which have also included the United Arab Emirates and Europe, may or may not yield a concrete result in time for an announcement on the sidelines of this week's Group of 20 (G20) leaders meeting, the people said.
The conversations have been underway for months but are fluid, one of the people said.
U.S. President Joe Biden is on his way to the G20 conference in New Delhi, India, where he is set to meet Indian Prime Minister Narendra Modi and may also have talks with Saudi Crown Prince Mohammed bin Salman.
The plans for a sweeping, multi-national ports and rail deal would come at a critical time. To counter China's Belt and Road global infrastructure push, Biden is pitching Washington as an alternative partner for and investor in developing countries at the G20, especially in the Indo-Pacific region.
#UAE shares jump on possible rail, port deal | Reuters
UAE shares jump on possible rail, port deal | Reuters
Stock markets in the United Arab Emirates rose on Friday, after Reuters reported that the United States, Saudi Arabia, India and other nations are discussing a possible rail and port deal.
The infrastructure deal talks, which have also included the United Arab Emirates (UAE), could reconfigure trade between the Gulf and South Asia, linking Middle Eastern countries by railways and connecting to India by port, according to U.S. officials aware of the conversations.
Abu Dhabi's benchmark index (.FTFADGI) settled 0.3% higher, bolstered by gains in real estate and banking stocks, including National Marine Dredging Company (NMDC.AD), which added 3.9%, while real estate giant Aldar Properties (ALDAR.AD) increased 0.6%.
UAE's largest lender, First Abu Dhabi Bank (FAB.AD), gained 1.1%.
After a month of price corrections, the Abu Dhabi market could rebound if traders continue to buy the dips and a rebound in oil prices could provide a boost to investor sentiment, said Hani Abuagla, Senior Market Analyst at XTB MENA.
Oil prices, a key catalyst for the Gulf's financial market, rebounded from the previous session's fall, as investors weighed fears about the health of China's economy against supply cuts from major producers Saudi Arabia and Russia.
Brent crude futures were up 0.71% or 64 cents to $90.56 a barrel by 1136 GMT.
Dubai's main index (.DFMGI) closed 0.2 higher, elevated by a 0.9% rise in top lender Emirates NBD Bank (ENBD.DU) and a 1.2% jump in state-run Dubai Electricity And Water Authority (DEWAA.DU).
Among the stocks, Islamic lender Mashreqbank (MASB.DU) advanced 3%.
The Abu Dhabi and Dubai indexes posted weekly losses of 1% and 0.55% respectively, according to LSEG data.
Stock markets in the United Arab Emirates rose on Friday, after Reuters reported that the United States, Saudi Arabia, India and other nations are discussing a possible rail and port deal.
The infrastructure deal talks, which have also included the United Arab Emirates (UAE), could reconfigure trade between the Gulf and South Asia, linking Middle Eastern countries by railways and connecting to India by port, according to U.S. officials aware of the conversations.
Abu Dhabi's benchmark index (.FTFADGI) settled 0.3% higher, bolstered by gains in real estate and banking stocks, including National Marine Dredging Company (NMDC.AD), which added 3.9%, while real estate giant Aldar Properties (ALDAR.AD) increased 0.6%.
UAE's largest lender, First Abu Dhabi Bank (FAB.AD), gained 1.1%.
After a month of price corrections, the Abu Dhabi market could rebound if traders continue to buy the dips and a rebound in oil prices could provide a boost to investor sentiment, said Hani Abuagla, Senior Market Analyst at XTB MENA.
Oil prices, a key catalyst for the Gulf's financial market, rebounded from the previous session's fall, as investors weighed fears about the health of China's economy against supply cuts from major producers Saudi Arabia and Russia.
Brent crude futures were up 0.71% or 64 cents to $90.56 a barrel by 1136 GMT.
Dubai's main index (.DFMGI) closed 0.2 higher, elevated by a 0.9% rise in top lender Emirates NBD Bank (ENBD.DU) and a 1.2% jump in state-run Dubai Electricity And Water Authority (DEWAA.DU).
Among the stocks, Islamic lender Mashreqbank (MASB.DU) advanced 3%.
The Abu Dhabi and Dubai indexes posted weekly losses of 1% and 0.55% respectively, according to LSEG data.
Mubadala formally opens Beijing office amid warming China-Gulf ties-sources | Reuters
Mubadala formally opens Beijing office amid warming China-Gulf ties-sources | Reuters
Abu Dhabi sovereign investor Mubadala Investment Company this week formally opened its Beijing office amid warming ties between the world's second-largest economy and the Gulf Arab states, five people with knowledge of the matter said.
Mubadala Investment Company is the second-biggest state fund in Abu Dhabi, the capital of the United Arab Emirates, after Abu Dhabi Investment Authority (ADIA).
While economic ties between China and the Gulf states remain anchored by energy interests, bilateral relations have expanded under the region's infrastructure, technology and financial push and amid Sino-U.S. geopolitical tensions.
Mubadala entered China a few years ago, but had to delay its office opening ceremony due to restrictions imposed during the COVID-19 pandemic, said one source.
Mubadala's Beijing-based team, about 10-strong, focuses on direct investments and fund investments in the country, said a second source. Its China portfolio includes JD Industrials, Hasten Biopharmaceutic and online fashion retailer SHEIN.
All the sources declined to be named as they were not authorised to speak to the media.
Abu Dhabi sovereign investor Mubadala Investment Company this week formally opened its Beijing office amid warming ties between the world's second-largest economy and the Gulf Arab states, five people with knowledge of the matter said.
Mubadala Investment Company is the second-biggest state fund in Abu Dhabi, the capital of the United Arab Emirates, after Abu Dhabi Investment Authority (ADIA).
While economic ties between China and the Gulf states remain anchored by energy interests, bilateral relations have expanded under the region's infrastructure, technology and financial push and amid Sino-U.S. geopolitical tensions.
Mubadala entered China a few years ago, but had to delay its office opening ceremony due to restrictions imposed during the COVID-19 pandemic, said one source.
Mubadala's Beijing-based team, about 10-strong, focuses on direct investments and fund investments in the country, said a second source. Its China portfolio includes JD Industrials, Hasten Biopharmaceutic and online fashion retailer SHEIN.
All the sources declined to be named as they were not authorised to speak to the media.
#Saudi Arabian auto rental firm Lumi prices IPO at top of range | Reuters
Saudi Arabian auto rental firm Lumi prices IPO at top of range | Reuters
Saudi Arabia's Lumi on Friday set the price of its initial public offering (IPO) at the top of a range announced last week, reflecting strong appetite for Saudi flotations after the IPO window opened following a summer lull.
Lumi, one of the largest auto rental firms in the kingdom, said the price for its shares was set at 66 riyals, giving the company a valuation of 3.63 billion riyals ($967.8 million).
The company is set to raise 1.089 billion riyals for its offering, which consists of a sale of 16.5 million shares, equivalent to 30% of its issued share capital.
Last week, Lumi disclosed a price range between 62 riyals and 66 riyals per share the IPO.
Lumi said the institutional book-building process generated an order book of about 102.9 billion riyals and was 94.5-times oversubscribed.
Saudi Arabia's Lumi on Friday set the price of its initial public offering (IPO) at the top of a range announced last week, reflecting strong appetite for Saudi flotations after the IPO window opened following a summer lull.
Lumi, one of the largest auto rental firms in the kingdom, said the price for its shares was set at 66 riyals, giving the company a valuation of 3.63 billion riyals ($967.8 million).
The company is set to raise 1.089 billion riyals for its offering, which consists of a sale of 16.5 million shares, equivalent to 30% of its issued share capital.
Last week, Lumi disclosed a price range between 62 riyals and 66 riyals per share the IPO.
Lumi said the institutional book-building process generated an order book of about 102.9 billion riyals and was 94.5-times oversubscribed.
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