Covestro Minority Shareholders Receive Final Buyout Offer

Covestro's majority shareholder sets final squeeze-out price at €59.46 per share, providing exit certainty for minority investors amid a challenging chemical sector.

The protracted acquisition of the German chemical producer Covestro is entering its conclusive phase. XRG P.J.S.C., the company's majority shareholder, has formally announced the precise cash compensation for the impending squeeze-out of remaining minority investors. This move provides definitive financial clarity for these shareholders amidst a deeply challenging period for the chemical industry.

Sector-Wide Pressures Highlight Covestro's Certainty

The broader European chemical sector is grappling with significant headwinds, including compressed profit margins, tepid demand, and industry overcapacity. This difficult environment underscores the relative certainty now afforded to Covestro's minority holders. Several of the company's direct competitors are currently facing pronounced difficulties:

• BASF: CEO Markus Kamieth stated that investments in the Zhanjiang, China complex are taking substantially longer to amortize than planned due to falling prices.
• Akzo Nobel: On March 21, Barclays investment bank sharply reduced its price target for the company from 69 to 47 euros.
• Fuchs SE: The firm recently issued a warning regarding a difficult business year expected in 2026.
• Lanxess: The planned sale of its stake in the plastics producer Envalior has been postponed indefinitely.

Binding Exit Valuation Set

The mandatory compensation for the remaining shareholders has been fixed at 59.46 euros per share. This figure establishes the binding valuation for the minority stakes in the materials manufacturer. Market pricing has already aligned closely with this offer. At Friday's market close, Covestro shares traded at 59.62 euros, hovering just fractionally above the announced settlement level. This price effectively sets a floor for the equity's valuation in the near term.

Path to Delisting and Final Steps

With the publication of the ad-hoc announcement detailing the cash settlement, the legal framework for the transfer of minority holdings is now in place. The final execution of the squeeze-out requires a formal shareholder resolution, which will be sought at an upcoming general meeting. Following this vote, the company's delisting will be legally completed upon entry in the commercial register, marking Covestro's exit from the public markets.