Covestro and Abu Dhabi National Oil Company (ADNOC) have entered open-ended discussions over a takeover approach, the German company said in a statement. Covestro’s Board of Management stated the discussion will address the safeguarding of the continued implementation of its future- and sustainability-oriented corporate strategy.

“The interest of ADNOC in our company underlines our strong position as one of the world’s leading manufacturers of high-quality polymer materials and as a leader in the shift towards a circular economy,” said Markus Steilemann, Covestro CEO. “Beyond current headwinds in our industry, we are optimally positioned to unlock significant long-term value in highly attractive industries underpinned by strong secular growth trends.”

For any agreement to be finalized, both parties must agree on commercial and legal terms and secure approval from their respective boards and the relevant authorities.

Covestro said in a statement that it does not plan to comment on the matter, but if circumstances change or events arise that mandate disclosure, it will comply with the relevant disclosure rules.