Episode 1251: EPCA, Covestro ADNOC deal puts Europe petrochemicals in the spotlight
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 polyurethenes (PU)- PC and PU struggles with poor demand from automotive, construction- Covestro operating profit slumped from around Euros3bn in 2021 to near euros 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 Connect with ICIS at EPCA 2024 in Berlin. ICIS will host a presentation at 2pm on Wednesday 9 October at Potsdam I, InterContinental Hotel.