1Anno·

Global chemical sell-off?


It was basically predictable that Western chemical producers would now be attractive to heavy "cash holders" in the wake of falling stock markets.


Insiders are predicting a takeover of $1COV (-0,8%) by $ADNOCDIST assume.

The oil company of the emirate Abu Dhabi already crossed my way on the stock exchange only some time ago.


My speculation at the time was that the takeover of $BRKM5 (-2,73%) . Later, the interest in Braskem was also proven by ADNOC.


A takeover with an offer to Covestro would have real chances from about 60€/share. Therefore, have fun to the gamblers. 👍

However, it remains to be seen how politics will behave. Here, one has clearly maneuvered oneself into a dead end.


But what would the economic consequences be in Germany?

Personally, I actually think that there is a certain tactic behind the decision to buy plastics producers.

With the takeovers of the two groups, a very large part of German plastics production would be under control and, thanks to the domestic group's cheaper oil and gas contracts, it would be able to exert a certain pricing power, which could certainly pose a threat to its competitors. In addition, further capital outflows would be shifted abroad. This is the next potential nail in the coffin for the Leverkusen site. A collective bargaining agreement for current employees would probably cease to apply in a similar way. However, this can only be assessed once a takeover has been negotiated at all, and of course depends on Covestro's integration into the ADNOC Group.


How realistic do you think a takeover of the German chemical giant is? Will further offers to German energy-intensive companies follow?

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12 Commenti

immagine del profilo
Selling off key industries to quasi-state companies owned by autocratic enemies of our liberal democracies - that fits in perfectly with Germany's economic policy of recent years. Our children will then have to pay for the mess. That's what makes politics fun! 🙄
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immagine del profilo
I went in at €31.58, so I might be able to get a quick 100%🤑 but I actually wanted to hold it as a dividend-paying stock for the long term 🙈
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immagine del profilo
For me, just another confirmation not to invest in German companies.
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immagine del profilo
Yes, I think there will be offers to energy-intensive companies, some of which are already underway or expected in the near future. After the chemical industry, the metals sector is also in focus (for example, Emirates Steel would like to have Thyssen's steel division, an offer is currently being prepared). But also petroleum processing (and plastics industry) as well as the production of glass, ceramics, paper, etc. will be increasingly affected, in my opinion.
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immagine del profilo
It is of course not the worst value and also offers opportunities without a takeover. Who was planning to enter here, now even has the chance to make quick profits. Was last year believe a good analysis in the German space to. Unfortunately outside my competence 🥶
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