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Covestro eyes 400 million eur in cost cuts after ADNOC talks intensify
Global Banking and Finance Review
Company
(Reuters) – Covestro, the German chemicals maker in talks to be acquired by ADNOC, on Tuesday launched an efficiency programme to cut 400 million euros ($429 million) in costs per year from end-2028.
(Reuters) – Covestro, the German chemicals maker in talks to be acquired by ADNOC, on Tuesday launched an efficiency programme to cut 400 million euros ($429 million) in costs per year from end-2028.
It also agreed with labour representatives to rule out forced redundancies in Germany until 2032.
Covestro said on Monday it was stepping up talks with ADNOC, also known as Abu Dhabi National Oil Co, after the Emirati energy group made an improved 11.7 billion euro takeover bid following more than a year of pursuing the chemicals firm.
($1 = 0.9314 euros)
(Reporting by Ozan Ergenay and Ludwig Burger; Editing by Miranda Murray)
Cost-cutting refers to the strategies and actions taken by a company to reduce its expenses and improve profitability. This can involve reducing staff, lowering operational costs, or finding more efficient processes.
A takeover bid is an offer made by an individual or company to purchase another company, usually at a premium over its current market price. This can be friendly or hostile, depending on the target company's response.
Forced redundancy occurs when an employer terminates an employee's contract against their will, usually due to organizational restructuring or cost-cutting measures. It can lead to unemployment for the affected individuals.
A labor representative is an individual or organization that advocates for the rights and interests of workers, often involved in negotiations with employers regarding working conditions, pay, and benefits.
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