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Agreement marks strategic merger between UAE oil company and German polymer materials giant
After a year of intense negotiations, the Abu Dhabi National Oil Company (Adnoc) completed the acquisition of Covestro, leading German company in the manufacture of poly materials mericans. The deal, closed last Tuesday (1), valued Covestro at approximately 11,7 billion euros (around R$ 70 billion), with the sale of each share for 62,00 Euros. This transaction reinforces Adnoc's strategy of expanding its operations in the energy sector, in a move similar to that adopted by North American giants such as Exxon Mobil, according to the website InfoMoney.
The purchase puts oil company Adnoc in a strategic position to diversify its operations in the global marketl of advanced materials, in addition to strengthening its presence in the energy value chain. However, the UAE oil company will face the challenge of reversing the recent decline in sales and profits from Covestro, aggravated by the slowdown in demand and lower-than-expected prices for German products.
Impacts of the acquisition on the market
With the completion of the purchase, Covestro, one of the largest polymer manufacturers in the world, is now part of the portfolio of the oil company Adnoc, which seeks to diversify its investments and reduce dependence on crude oil. The strategy follows a global trend of mergers and acquisitions in the energy sector, where large players seek expand its operations beyond the extraction and refining of fossil fuels.
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BEAUTY AND PERSONAL CARE
In the first half of this year, Covestro faced financial difficulties, with a drop in 3,5% in sales, totalizing 7,2 billion euros compared to the previous year. In addition, the company recorded a net loss, reflecting the challenging conditions of the global materials market, mainly due to the economic slowdown in Europe and international competition. These challenges will be key focuses for Adnoc following the completion of the acquisition.
Despite the difficulties faced by Covestro, the news of the acquisition brought optimism to the market. Around 9:30 (Brasilia time), the company's shares rose by 3,8% on the Frankfurt Stock Exchange, reflecting investors' confidence in the company's new phase under Adnoc's leadership.
Adnoc's diversification strategy
The purchase of Covestro is part of a broader strategy by oil major Adnoc to diversify its revenue streams and position itself as a market leader. competitive way in the global energy scenario. With increasing pressure for energy transition and adoption of more sustainable technologies, the acquisition of companies operating in polymer materials, such as Covestro, offers Adnoc new growth opportunities outside the oil and gas sector.
Like other major oil companies, oil major Adnoc is looking for opportunities that allow you to expand your operations in markets that are more aligned with global trends sustainability and innovation. The merger between an energy company and an advanced materials manufacturer aligns with the growing demand for sustainable products, such as recyclable plastics and low environmental impact materials, used in various industrial sectors.
Covestro, in turn, benefits from Adnoc’s capital and expertise to reverse its downward trajectory and invest in new technologies and markets. The partnership promises innovations that can boost the polymer materials industry and contribute to the development of more sustainable solutions.
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