Page 161 - CW E-Magazine (19-9-2023)

News from Abroad

PROPOSED ACQUISITION

Covestro begins formal deal talks with Adnoc

German chemical and polymer the company said in a press note. The flexes its financial muscle, deploying
company, Covestro, has announced that company said it would look specifically years of excess hydrocarbon reve-
it has agreed to enter into “open-ended” at ensuring it can continue its sustain- nues into sectors that could help the
talks on a potential acquisition by ability strategy. state wean itself off oil dependency.
the Abu Dhabi National Oil Company
(Adnoc). According to reports, the Dr. Markus Steilemann, CEO of Adnoc, under the leadership of
move came after Adnoc’s most recent Covestro, said, “The interest of Adnoc Sultan al-Jaber, has amassed a nearly
offer for Covestro at €60 per share in our company underlines our strong 50-strong team of dealmakers. The
was conveyed verbally. That marks an position as one of the world’s leading group is pursuing roughly $50-bn in
increase from June when it offered €55 manufacturers of high-quality polymer transactions including simultaneous
per share, which at the time equated to materials and as a leader in the shift deals with Brazilian petrochemical
a 40 percent premium from Covestro’s towards a circular economy.” maker Braskem and Austria’s OMV as
undisturbed share price. part of a push to diversify its business
The latest offer is equivalent to and expand abroad.
“Whether, in which form and, if an almost €11.6-bn valuation for the
applicable, at which conditions an company’s equity, before taking debt Covestro, which was spun out of Bayer
agreement between the parties will be and other factors into account. The in 2015, could help Adnoc expand its
reached is open and will depend on the offer by the United Arab Emirates’ chemicals business as part of a broader
course of the forthcoming discussions,” Adnoc comes as the oil-rich emirate diversification strategy.

CONSOLIDATION
Albemarle makes revised bid to acquire Australia’s

Liontown valued at $4.3-bn

Albemarle, the world’s leading proposal to its shareholders, “subject to expand its portfolio through explo-
lithium producer, confirmed that it has to entry into a binding agreement and ration, partnerships and acquisitions.
submitted a “best and final” non-bind- other terms and conditions”. Liontown has agreed to let Albemarle
ing proposal to acquire all outstanding look at some of its private records as
shares of junior Australian rival, Lion- According to a press release, part of a due diligence process that will
town by way of scheme of arrangement Albemarle and Liontown will enter into also include a review of Liontown’s
for A$3.00 cash per share. a mutually acceptable non-disclosure agreement to supply lithium to Ford,
and exclusivity agreement granting Tesla and others through 2030.
In a statement, Albemarle said that Albemarle with an exclusivity period to
the revised proposal values Liontown undertake confirmatory due diligence Albemarle is already a major miner
at A$6.6-bn or US$4.3-bn on an equity and negotiate a binding scheme imple- and processor of the battery metal in
value basis. The previous proposal of mentation deed (SID). Australia, and the proposed deal is
A$2.50 per share in cash, announced widely seen as a move to cement that
on March 27, 2023, valued Lion- “The revised proposal is non-bind- dominance. For Albemarle, Liontown
town at A$5.2-bn or US$3.4-bn on an ing and there is no certainty that any and its Kathleen Valley lithium de-
enterprise basis. The company pointed transaction will be agreed to or will posit would “increase our opportunity
out that the revised proposal “delivers proceed,” the company said. to meet rapid and growing lithium de-
an immediate premium for Liontown mand,” CEO Mr. Kent Masters said
investors and is expected to drive signi- Liontown Resources is an emerging on a recent call with investors. “What
ficant value creation for Albemarle battery minerals producer. The company makes it a world class asset is the
shareholders,” adding that Liontown currently controls two major lithium quality, the size and the fact that it’s
board intends to recommend the revised deposits in Western Australia and aims in Western Australia,” he added.

Chemical Weekly September 19, 2023 161

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