ADNOC to buy Covestro for $16.3 billion

Following negotiations that lasted more than a year , Abu Dhabi National Oil Company (ADNOC) has agreed to acquire the German plastics producer Covestro for $16.3 billion. Covestro recorded sales of about $15.9 billion in 2023. Its main products are polycarbonates and precursors for polyurethane such as toluene diisocyanate. Part of the German firm Bayer until 2016, Covestro has 17,500 employees and 49 production sites worldwide. The acquisition “represents a pivotal step for both organizations and embodies our disciplined approach to investing in strategic assets that drive long-term value and unlock new growth opportunities, while reinforcing our commitment to diversifying ADNOC’s portfolio,” ADNOC CEO Sultan Ahmed Al Jaber says in a press release. The deal is the latest in a long line of chemical company purchases by Middle Eastern oil and gas companies seeking to diversify into higher-value downstream products. ADNOC says it plans to use Covestro to help it