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MarketScreener Homepage  >  Equities  >  Xetra  >  Covestro AG    1COV   DE0006062144

COVESTRO AG

(1COV)
  Report
Real-time Estimate Quote. Real-time Estimate Tradegate - 12/01 02:00:08 am
47.13 EUR   +0.81%
11/27COVESTRO : Kepler Cheuvreux reiterates its Buy rating
MD
11/27COVESTRO : Goldman Sachs remains its Buy rating
MD
11/26COVESTRO : Baader Bank remains its Buy rating
MD
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SummaryMost relevantAll NewsPress ReleasesOfficial PublicationsSector newsMarketScreener StrategiesAnalyst Recommendations

Covestro buys DSM's resins unit for 1.6 bln euros

09/30/2020 | 02:50am EST

* Deal boosts smaller coatings division

* Biggest transaction since 2015 Bayer spin-off

* Covestro encouraged by faster business recovery

* DSM to increase focus on nutrition and health products

FRANKFURT, Sept 30 (Reuters) - Germany's Covestro will buy Dutch peer DSM's Resins and Functional Materials business for about 1.6 billion euros ($1.88 billion), banking on a rebound of a global economy depressed by the coronavirus pandemic.

The deal, which will likely be wrapped up by March 2021, adds products such as coatings for optical fibres, buildings and cars, recyclable carpets and printable plastics.

The new business will add about 1 billion euros in revenues to Covestro's Coatings, Adhesives, Specialties (CAS) division, it said in a statement on Wednesday.

The company has swiftly rebounded from a slump due to the coronavirus pandemic earlier this year, and finance chief Thomas Toepfer expected that trend would continue into the fourth quarter.

Covestro has shunned larger takeovers since it was spun off from Bayer in 2015, mainly because expanding its two main units - makers of transparent polycarbonate plastics as well as chemicals for insulation slabs and upholstery foams - would trigger antitrust pushback.

The smaller but more profitable CAS unit makes additives for coatings and adhesives, competing with DSM, Evonik, Vencorex of France and Wanhua Chemical.

For its part, DSM said it would hone in on its nutrition and health business, with products such as vitamins, baby formula and animal feed accounting for two thirds of its 2019 group sales of 9 billion euros.

Covestro shares fell 6.8% at 0915 GMT as analysts said the deal's merit depends on ambitious annual synergies of 120 million euros targeted by Covestro by 2025, 80 million from lower costs and the remainder from new revenue opportunities. DSM stock gained 4.3%.

CFO Toepfer said exclusive talks with DSM had allowed Covestro to have 150 experts scan the target for synergies.

"We are convinced these are ambitious but absolutely realistic numbers," he said.

The buyer plans to sell new shares worth 450 million euros to help fund the deal.

Covestro this month said it was not in talks to be taken over by Apollo Global Management, reacting to a report that the private equity firm was exploring a takeover.

Barclays acted as financial advisor to Covestro. (Additional reporting by Bart Meijer, Patricia Weiss, Arno Schuetze Editing by Riham Alkousaa and Elaine Hardcastle)


© Reuters 2020
Stocks mentioned in the article
ChangeLast1st jan.
BARCLAYS PLC -3.38% 135 Delayed Quote.-25.09%
BAYER AG -2.50% 48.27 Delayed Quote.-33.70%
COVESTRO AG -1.48% 46.75 Delayed Quote.12.79%
EVONIK INDUSTRIES AG 0.68% 25.31 Delayed Quote.-6.98%
ROYAL DSM N.V. 0.22% 137.3 Delayed Quote.18.26%
WANHUA CHEMICAL GROUP CO., LTD. -2.47% 82.1 End-of-day quote.46.16%
All news about COVESTRO AG
11/27COVESTRO : Kepler Cheuvreux reiterates its Buy rating
MD
11/27COVESTRO : Goldman Sachs remains its Buy rating
MD
11/26COVESTRO : Baader Bank remains its Buy rating
MD
11/24COVESTRO AG : Notification and public disclosure of transactions by persons
EQ
11/24COVESTRO AG : Release according to Article 40, Section 1 of the WpHG [the German..
EQ
11/24COVESTRO : Goldman Sachs maintains a Buy rating
MD
11/23COVESTRO AG : Release according to Article 40, Section 1 of the WpHG [the German..
EQ
11/20COVESTRO AG : Release according to Article 40, Section 1 of the WpHG [the German..
EQ
11/18COVESTRO : Baader Bank remains its Buy rating
MD
11/18COVESTRO AG : Release according to Article 40, Section 1 of the WpHG [the German..
EQ
More news
Financials
Sales 2020 10 461 M 12 537 M 12 537 M
Net income 2020 248 M 297 M 297 M
Net Debt 2020 1 135 M 1 360 M 1 360 M
P/E ratio 2020 35,5x
Yield 2020 2,75%
Capitalization 9 161 M 10 953 M 10 979 M
EV / Sales 2020 0,98x
EV / Sales 2021 0,94x
Nbr of Employees 16 626
Free-Float 92,8%
Chart COVESTRO AG
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Covestro AG Technical Analysis Chart | MarketScreener
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Technical analysis trends COVESTRO AG
Short TermMid-TermLong Term
TrendsBullishBullishBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 20
Average target price 51,05 €
Last Close Price 47,45 €
Spread / Highest target 37,0%
Spread / Average Target 7,59%
Spread / Lowest Target -22,0%
EPS Revisions
Managers
NameTitle
Markus Steilemann Chief Executive Officer
Richard Pott Chairman-Supervisory Board
Thomas Toepfer Chief Financial Officer & Labor Director
Klaus Schäfer Chief Technology Officer
Petra Kronen Vice Chairman-Supervisory Board
Sector and Competitors
1st jan.Capitalization (M$)
COVESTRO AG14.48%10 953
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DOW INC.1.22%41 093
FORMOSA PLASTICS CORPORATION-12.22%19 452
FORMOSA CHEMICALS & FIBRE CORPORATION-8.91%16 193
LOTTE CHEMICAL CORPORATION29.02%8 907