ADNOC International Germany Holding has filed a $16.4bn takeover offer for leading chemicals firm Covestro.
Dr. Sultan Ahmed Al Jaber, ADNOC Managing Director and Group CEO, said as a global leader and industrial pioneer in chemicals, Covestro brings ‘unmatched expertise in high-tech specialty chemicals and materials’, using advanced technologies including AI – a key focus for the Abu Dhabi corporation too, under its ENERGYai strategy.
“This strategic partnership is a natural fit and aligns seamlessly with ADNOC’s ongoing smart growth and future proofing strategy and our vision to become a top five global chemicals company,” he said.
Dr. Markus Steilemann, CEO of Covestro, said with ADNOC International’s support, it will have an even stronger foundation for sustainable growth in highly attractive sectors and can make an even greater contribution to the green transformation.
“Our complementary growth strategies, shared commitment to advanced technologies, innovation and sustainability are key cornerstones of our partnership,” he said.
Last year Covestro, which operates 48 production sites globally, recorded group sales of €14.4bn.
Its two main segments, Performance Materials and Solutions & Specialties, comprise seven business entities.
ADNOC’s ENERGYai lab is exploring up to 15 accelerated proof of concepts and three ‘breakthroughs’. AI solutions helped the company generate $500m last year and cut CO2 emissions by 1 million tonnes.
Centralised Predictive Analytics and Diagnostics (CPAD) uses AI to keep operations running smoothly, tracking historic and real-time data and diagnosing anomalies, to address maintenance challenges.
Integrated Real Time Optimisers (iRTO) balance operating data, utility costs, and product prices to maximise production of natural gas liquids across all processing facilities.
Last month ADNOC signed a long-term Heads of Agreement with Indian Oil Corporation, India’s largest integrated and diversified energy company, for the delivery of 1 million metric tonnes per annum (mmtpa) of liquefied natural gas (LNG).
The LNG will primarily be sourced from ADNOC’s lower-carbon Ruwais LNG project, which is currently under development in Al Ruwais Industrial City, Abu Dhabi, and is expected to start commercial operations in 2028. Under the 15-year agreement, LNG cargoes will be shipped to IndianOil’s destination ports in India.
