Recently reported by Bloomberg, the Abu Dhabi National Oil Company (ADNOC) is planning to escalate its bid for the German chemical company Covestro. This planned acquisition marks a departure for ADNOC from its core oil and gas business, as it seeks to find opportunities in the chemical industry. The two have been in talks since June. 

Established in 1971, ADNOC has been a dominant force in the global energy sector, involved in the exploration, production, and distribution of oil and natural gas, along with refining and petrochemical manufacturing. The company operates two significant oil refineries, Ruwais Refinery and Umm Al Nar, underscoring its influential position in the industry.

ADNOC's current proposal of about €60 a share is an increase from earlier offerings of €55 and €57 that Covestro viewed as too low. The current offer values Covestro at around €11.3 billion ($12.4 billion).

ADNOC is diversifying, bidding on projects like OCI's €3.31 billion ($3.62 billion) Fertiglobe stake in December 2023. These moves align with ADNOC's plan to expand globally.

ADNOC's commitment to the new direction is evident in its willingness to offer concessions and invest around €7.97 billion ($8.72 billion) post-acquisition. Negotiations are still ongoing, and ADNOC might delay its updated bid submission until 2024.