Covestro, the Leverkusen-based plastics corporation, remains unfazed by the European Commission’s announcement of an in-depth review of its pending acquisition by Abu Dhabi National Oil Company (Adnoc). According to Covestro’s Chief Financial Officer, Christian Baier, in an interview with Handelsblatt, the review was anticipated.
“We had expected this examination by the EU regarding the Adnoc acquisition” Baier stated. “It has not created any new uncertainty. We remain engaged in very constructive discussions and are confident that the acquisition can be finalized in the second half of the year”. The European Commission initiated the review recently, citing potential distortions of competition due to possible subsidies.
Regarding the company’s business performance, Baier expressed initial pessimism following the release of Covestro’s weaker-than-expected second-quarter results. He explained that prior optimism for positive trends in the second half of the year has been overshadowed by ongoing customs-related issues. “Short-term recovery is not visible” Baier commented.
While acknowledging the recent EU trade agreement with the United States, Baier characterized it as offering a degree of increased security, noting that without it, continuous reporting of developments would be unnecessary. He emphasized the importance of the details regarding the agreement’s implementation.
Baier also urged the German government to implement measures fostering increased investment within Covestro’s operations in Germany. “We would like to invest strongly in Germany again – but not blindly” he said. “We won’t immediately discard existing investment plans due to a change in government”.
