EPCA ’24 PODCAST: Covestro ADNOC deal puts Europe petrochemicals in the spotlight

BARCELONA (ICIS)–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 polyurethanes (PU)
• PC and PU struggle with poor demand from automotive, construction
• Covestro operating profit slumped from around €3bn in 2021 to near €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

In this Think Tank podcast, Will Beacham interviews Nigel Davis and John Richardson from the ICIS market development team and Paul Hodges, chairman of New Normal Consulting.

Editor’s note: This podcast is an opinion piece. The views expressed are those of the presenter and interviewees, and do not necessarily represent those of ICIS.

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