Abu Dhabi National Oil Company (Adnoc) has made a preliminary takeover proposal, worth more than €10bn ($10.9bn), for German chemical company Covestro, reported Reuters, citing people with knowledge of the matter.

The state-backed company's informal offer includes a per share price in the mid-€50s for Covestro. This would potentially value the chemical company at almost €11bn.

According to sources, Adnoc has held initial talks to express interest in a potential deal with Covestro.

Some of the sources were cited by Bloomberg News as saying that Adnoc is likely to keep operations of Covestro independent following the potential takeover transaction.

However, Adnoc is expected to support Covestro’s management in expanding business and becoming more sustainable, they added.

The sources said that deliberations between Adnoc and the chemical company are in the early stages and there is no certainty that UAE’s top oil producer will proceed with the Covestro takeover.

Earlier, Adnoc unveiled plans to invest $150bn to boost its production capacity for crude, natural gas and chemicals, as well as low-carbon energy.

The media outlet reported that Apollo was looking to take over Covestro in 2020. However, this did not materialise. Other undisclosed companies also proposed takeover offers for Covestro around that time, but according to sources management rebuffed the offers.

In 2022, Adnoc acquired a 24.9% stake in Austrian energy and chemicals company OMV from Mubadala Investment Company for around €3.9bn in order to increase its chemicals production.