عربي English Türkçe اردو فارسى
Logo
Latest News
Business

Abu Dhabi's ADNOC to Buy German Chemicals Company Covestro for $16.4 Bln

A general view of ADNOC headquarters in Abu Dhabi, United Arab Emirates May 29, 2019. (Reuters)
A general view of ADNOC headquarters in Abu Dhabi, United Arab Emirates May 29, 2019. (Reuters)
TT
TT

Abu Dhabi's ADNOC to Buy German Chemicals Company Covestro for $16.4 Bln

A general view of ADNOC headquarters in Abu Dhabi, United Arab Emirates May 29, 2019. (Reuters)
A general view of ADNOC headquarters in Abu Dhabi, United Arab Emirates May 29, 2019. (Reuters)

Abu Dhabi state oil giant ADNOC said on Tuesday that it has agreed to buy German chemicals producer Covestro for 15.9 billion euros ($18 billion) including debt, sending Covestro shares up 4% in early trade.

The deal represents one of the biggest foreign takeovers by a Gulf state as Abu Dhabi and other countries in the region seek to reduce their economies' heavy dependence on oil in the face of the global energy transition.

It follows protracted negotiations between the two companies and will see ADNOC pay 62 euros per Covestro share, equal to 14.7 billion euros including about 3 billion euros in debt.

ADNOC added it would also buy 1.17 billion euros worth of new shares in Covestro, a former Bayer unit, from a capital increase to improve funding of the takeover target.

The deal marks a cornerstone for ADNOC's plans to grow its petrochemicals business along with gas and renewable energy.

Covestro, which makes plastics and chemicals for the automotive, construction and engineering sectors, was created in 2015 after being spun off from Bayer. 

Most Viewed

 
 
Business

Japan's Incoming PM Ishiba Calls for Loose Monetary Policy

Shigeru Ishiba, the newly elected leader of Japan's ruling party, the Liberal Democratic Party (LDP) poses in the party leader's office after the LDP leadership election, in Tokyo, Japan September 27, 2024. REUTERS
Shigeru Ishiba, the newly elected leader of Japan's ruling party, the Liberal Democratic Party (LDP) poses in the party leader's office after the LDP leadership election, in Tokyo, Japan September 27, 2024. REUTERS
TT
TT

Japan's Incoming PM Ishiba Calls for Loose Monetary Policy

Shigeru Ishiba, the newly elected leader of Japan's ruling party, the Liberal Democratic Party (LDP) poses in the party leader's office after the LDP leadership election, in Tokyo, Japan September 27, 2024. REUTERS
Shigeru Ishiba, the newly elected leader of Japan's ruling party, the Liberal Democratic Party (LDP) poses in the party leader's office after the LDP leadership election, in Tokyo, Japan September 27, 2024. REUTERS

Japan's incoming prime minister, Shigeru Ishiba, said on Sunday the country's monetary policy must remain accommodative as a trend, signaling the need to keep borrowing costs low to underpin a fragile economic recovery.
It was not immediately clear whether Ishiba, who had been a vocal critic of the Bank of Japan's past aggressive monetary easing, was taking a more dovish line with his remarks.
“It's something the Bank of Japan, which is mandated to achieve price stability, will decide while working closely with the government,” Ishiba told public broadcaster NHK, when asked about further interest rate increases by the central bank.
“From the government's standpoint, monetary policy must remain accommodative as a trend given current economic conditions,” he said.
On fiscal policy, Ishiba said he will aim to compile a package of measures at an early date to cushion the economic blow from rising living costs, with a focus on helping low-income households.
Ishiba, a former defense minister, is set to become prime minister on Tuesday after winning the presidency of the ruling Liberal Democratic Party on Friday.
After his victory, Ishiba said monetary policy would broadly remain loose but suggested he would not push back against further increases in still near-zero interest rates.
The BOJ ended negative interest rates in March and raised short-term borrowing costs to 0.25% in July in a landmark shift away from a decade-long, radical stimulus program.
BOJ Governor Kazuo Ueda has signaled a readiness to raise rates further if Japan makes progress towards durably achieving the bank's inflation 2% target, as the board projects it will.
Ishiba told Reuters in August that the BOJ was on the “right policy track” by ending negative rates and endorsed further normalization of monetary policy, saying it could boost industrial competitiveness.
But in an interview this month, he said Japan must prioritize making a full exit from deflation and warned of weak signs in consumption.
The yen, which fell on Friday on news that a dovish rival would join Ishiba in a run-off for the LDP leadership, rebounded on his victory.