Covestro, the German plastics manufacturer, has expressed confidence regarding its impending acquisition by Abu Dhabi National Oil Company (ADNOC), despite the European Commission’s announcement of a deeper investigation into the deal.
According to Covestro’s Chief Financial Officer, Christian Baier, the company anticipated the EU’s scrutiny, triggered by potential distortions of competition due to ADNOC’s subsidies. “We had expected this review from the EU regarding the ADNOC acquisition” Baier told the Handelsblatt newspaper. “It hasn’t introduced new uncertainties. We remain in very constructive discussions and we are confident that the acquisition can be completed in the second half of the year.
Baier’s outlook, however, reflects a more cautious assessment of Covestro’s business performance following the release of weaker-than-expected results for the second quarter. He indicated a reassessment of previous projections, citing ongoing tariff-related challenges. “At the beginning of the year, we were still confident that we would see positive effects in the second half of the year. That’s now overshadowed by the tariff issues” he stated. “We do not see a recovery in the short term.
While acknowledging a degree of increased stability following the EU-US tariff agreement, Baier emphasized that the deal doesn’t represent a definitive resolution. He noted the importance of meticulously examining the specifics of the agreement’s implementation.
Furthermore, Baier urged the German government to implement measures that would incentivize Covestro to increase investment within Germany. He stressed the importance of strategic investment decisions, adding that “We want to invest strongly in Germany again – but not blindly. We do not immediately discard previous investment plans due to a change in government”.