ADNOC plans to increase its takeover bid for German chemical company Covestro, reported Bloomberg, citing sources. 

The Middle East oil and gas major is willing to offer concessions to start the extensive due diligence process.

In the coming days, ADNOC plans to make a new proposal priced at roughly €60 ($65.64) per share, the sources said, adding that it will value Covestro at around €11.3bn.

The United Arab Emirates state-owned company also intends to guarantee jobs for several years and invest roughly $8bn (Dh29.38bn) after the acquisition is closed.

Talks are still ongoing and ADNOC may decide to submit its updated bid in 2024.

ADNOC and Covestro representatives declined to comment on the development. 

Based in Leverkusen, Germany, Covestro manufactures foam chemicals used in automobile seats, beds and insulation for buildings.

In September this year, Covestro said it had entered open-ended talks with ADNOC.

The two companies began talking after ADNOC’s informal bids of €55 and €57 per share were rejected by Covestro, which said these were too low.

ADNOC’s efforts to acquire the German company form part of the energy company’s plan to diversify its operations away from oil.

Besides Covestro, ADNOC is in negotiations with Austrian energy company OMV and Braskem, a Brazilian petrochemical producer. 

Last week, reports emerged that ADNOC is close to reaching an agreement with OMV to merge their petrochemical businesses.

In July this year, ADNOC and OMV commenced talks to combine Vienna-based Borealis and Borouge, which is listed on the Abu Dhabi Securities Exchange, to form a new chemicals company potentially valued at $30bn.

ADNOC is also weighing the acquisition of European oil and gas company Wintershall Dea.