ADNOC’s agreement to buy Covestro ahead of next week’s European Petrochemical Association (EPCA) annual meeting highlights the challenges and opportunities facing Europe’s beleaguered chemical industry.
- Abu Dhabi National Oil Co (ADNOC) to acquire Covestro for equity value of €11.7 billion
- ADNOC diversifies downstream from oil and gas
- Covestro global leader in polycarbonate (PC) and polyurethenes (PU)
- PC and PU struggles with poor demand from automotive, construction
- Covestro operating profit slumped from around Euros3bn in 2021 to near euros 1bn in 2023
- Covestro boasts strong sustainability-related product portfolio
- More M&A likely in Europe petrochemicals thanks to cheap bottom of cycle valuations
- Oil prices may collapse to $30/bbl if OPEC goes for market share
Connect with ICIS at EPCA 2024 in Berlin. ICIS will host a presentation at 2pm on Wednesday 9 October at Potsdam I, InterContinental Hotel.
