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.