Covestro has signed an investment agreement with ADNOC Group, facilitating a public takeover at €62.00 per share, aimed at bolstering its 'Sustainable Future' strategy with a capital injection of €1.17 billion.

Target Information

Covestro, a prominent player in the chemical industry, demonstrated resilience in the third quarter of 2024, achieving stable sales of approximately EUR 3.6 billion. Notably, this figure reflects a slight increase from EUR 3.57 billion recorded in the same period the previous year, even as lower raw material prices exerted downward pressure on selling prices. The Group's EBITDA saw a positive shift, increasing by 3.6 percent to EUR 287 million compared to EUR 277 million last year, aligning with anticipated performance metrics within a range of EUR 250 million to EUR 350 million. Covestro reported a net income of EUR 33 million, a significant recovery from a loss of EUR 31 million in the previous year, although free operating cash flow decreased to EUR 112 million from EUR 308 million due to reduced operating cash inflows.

Industry Overview in Germany

The chemical industry in Germany, where Covestro is based, is a cornerstone of the national economy, contributing significantly to the GDP and providing jobs for hundreds of thousands of people. This sector has faced numerous challenges recently, including volatile raw material costs and fluctuating global demand, which have impacted revenues across various companies. However, Germany remains a leader in chemical production, particularly in specialty chemicals and advanced materials, driven by innovation and a commitment to sustainability.

In recent years, the industry has been undergoing a transformation, focusing on eco-friendly practices and developing sustainable products. German companies are investing in renewable energy and circular economy initiativ