Significant Events
Events within the Company
Start of Negotiations with ADNOC about a Possible Transaction
On the basis of the without-prejudice discussions with the Abu Dhabi National Oil Company (ADNOC) held up to then, the Board of Management of Covestro AG resolved on June 24, 2024, after consultations with the Supervisory Board, to enter into concrete negotiations with ADNOC about a possible transaction and the possible conclusion of an investment agreement and to enable an adequate exchange of corporate information to confirm assumptions (confirmatory due diligence).
The starting point of the negotiations is the prospect of a potential offer price of €62 per Covestro share indicated to Covestro by ADNOC, which is subject to, among other things, the results of the confirmatory due diligence as well as agreement on the substance of an investment agreement.
Global Transformation Program
In the face of rapid changes in the market environment, Covestro has launched the global transformation program “STRONG.” STRONG is aimed at making the company even more effective and efficient and at driving digitalization. The Group is planning to realize global annual savings in non-labor and personnel costs of €400 million by the year 2028; of that total, €190 million will be attributable to Germany. In this context, expenses in the low double-digit million euro range were incurred for the implementation of the transformation program in the second quarter of 2024.
Another step in this transformation program was the Board of Management's decision to discontinue operations at the production site in Augusta, Georgia (United States). In this context, impairment losses of €21 million were recognized on property, plant and equipment, primarily plant installations and machinery, in the Solutions & Specialties segment in the second quarter of 2024. Products for the powder coatings business will be manufactured at the production site in Augusta, Georgia (United States), until its closure. The customer business with powder coatings in the NA region will continue irrespective of the closure of the production site.