The Abu Dhabi National Oil Company is nearing a €14.4bn agreement to take over the German chemicals group Covestro, setting up the Gulf state-owned energy producer to expand its overseas holdings.
Covestro has agreed to enter “concrete negotiations” after the UAE’s Adnoc boosted its proposal to €62 per share. Adnoc had previously offered €60 per share.
The news sent Covestro’s share price 6 per cent higher to €54.52 by early afternoon in Frankfurt on Monday in what would be the largest acquisition in Europe this year and the biggest all-cash deal in the chemicals sector.
The deal would also represent the first successful takeover of a German Dax 40 company by a Gulf state-owned group.
The two sides have agreed to conduct confirmatory due diligence, and Covestro said in a statement that it would cancel its capital markets day scheduled for Thursday.
The two sides have been in talks since the Gulf sovereign wealth fund made an initial informal offer in September 2023.
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