DThe chemical company Covestro has expressed openness to being acquired by the oil company Abu Dhabi National Oil (Adnoc) after weeks of speculation. The Covestro board has decided to engage in open discussions regarding Adnoc’s expressed interest, as announced by the Dax-listed company on Friday evening. This allows both companies to now discuss the details of a potential acquisition. Recently, there have been reports in the media suggesting that the Arabs have informally offered 60 euros per share, which corresponds to a value of 11.6 billion euros.
Wie hoch ein Angebot ausfallen müsste, um auf Zustimmung von Covestro zu treffen, bleibt aber erst einmal offen. „Ob, in welcher Form und gegebenenfalls zu welchen Konditionen eine Vereinbarung zwischen den Gesprächspartnern zustande kommt, ist offen“, betonten die Leverkusener.
The Covestro stocks recently had a price of 52.82 Euros on the Tradegate trading platform. This increased their gains from almost eight percent to 51.50 Euros from the Xetra main business. In the afternoon, the news agency Bloomberg reported that Covestro is likely to be open for discussions this week. As a result, the stock price soared.
The board has so far declined to comment on speculations.
Speculation about Adnoc’s interest has been circulating since mid-June, when the shares were priced at around 40 euros. However, Covestro’s management, led by CEO Markus Steilemann, has consistently avoided making any specific comments on the matter and repeatedly stated that speculation would not be addressed. It is rumored that both parties have not yet engaged in direct communication, but have instead communicated informally through investment banks and lawyers.
Analyst Markus Mayer from Baader Bank has had Covestro on his radar as a potential acquisition target for over a year. This is because the company’s valuation is lower than the cost of replicating all its production facilities. Additionally, the company impresses with its advanced technology and cost leadership in production. Since July, Mayer has also taken into account a potential acquisition price of 70 euros per share when evaluating the stocks.
The reason for the decline in the stock price until the emergence of the Adnoc rumors was initially the global supply shortages and production issues during the Corona pandemic, and recently, the sluggish global economy. The plastic company experienced a weakness in the construction industry as well as the reluctance of many consumers to purchase entertainment electronics, household appliances, and furniture.
The weak construction industry affects the entire corporation.
If these areas weaken, the demand for the company’s hard and soft foam semi-finished products, which are processed into insulation materials, cushions, and similar items, also slows down. And there is also less demand for hard plastics, polycarbonates, such as laptop and smartphone casings.
Auch für Analyst Sebastian Satz von der britischen Investmentbank Barclays sind die kolportierten 60 Euro je Aktie eher niedrig. Der Betrag könne aber ausreichen, um Übernahmegespräche zu beginnen, da die Aktie des Kunststoffkonzerns in der jüngsten Vergangenheit selten über diesem Niveau gehandelt worden sei, hatte der Experte Mitte August erklärt.
Adnoc baut seit einiger Zeit sein Engagement rund um das Chemiegeschäft aus. Der Konzern fördert fast das gesamte Öl für die Vereinigten Arabischen Emirate. Er hat Investitionspläne in Höhe von 150 Milliarden US-Dollar, um sein Geschäft in den Bereichen Erdgas, Chemikalien und saubere Energie weltweit zu erweitern.
Because the oil producers in the Persian Gulf want to diversify their business, which has so far focused on the sale of crude oil, gasoline, and diesel. Additionally, Adnoc is attempting to enhance its position in competition with the oil company Saudi Aramco. Last year, Adnoc already acquired shares in the Austrian oil and gas company OMV.