Covestro to Enter Formal Talks on $12 Billion Adnoc Bid (2)

Covestro AG said its management board decided to enter “open-ended discussions” over a potential takeover by Abu Dhabi National Oil Co.

Whether a deal “will be reached is open and will depend on the course of the forthcoming discussions,” Covestro said in a statement Friday, confirming an earlier Bloomberg News report.

Covestro said its management board will seek corporate government provisions to protect its future strategy and sustainability.

The decision to entertain Adnoc’s takeover approach paves the way for management of the German chemical firm to begin detailed negotiations. It comes after weeks of discussions between the companies’ advisers over ...