German chemical company Covestro and XRG (formerly known as ADNOC International) announced that they have obtained final regulatory approval from the German Federal Ministry of Economy and Energy. At this point, all delivery conditions required for ADNOC's acquisition of Covestro have been met, and delivery is expected to be completed in the coming days. On October 1, 2024, Covestro signed an investment agreement with related entities under ADNOC. The acquirer will publicly acquire all issued shares of Covestro for approximately 11.7 billion euros, including 3 billion euros in debt, with a total transaction value of 14.7 billion euros. In addition, Covestro will issue 10% new shares and receive an injection of 1.17 billion euros from ADNOC.
Although the overall market sentiment tends to be cautious, the domestic silicone market showed positive signals on Tuesday, driven by the expected implementation of emission reduction policies for individual enterprises. Downstream demand side's willingness to replenish inventory increased, and market activity improved.
At present, the mainstream quotation for DMC is around 13200-13500 yuan/ton, and actual transactions mostly revolve around 13250 yuan/ton. Currently, individual enterprises mainly focus on delivering pre-sale orders in the early stage, and the industry still has a strong willingness to raise prices. It is reported that specific emission reduction plans involving 11 individual enterprises are expected to be clarified this week, further strengthening the market's expectation of supply tightening.
At the same time, the 2025 China International Coatings Exhibition currently being held in Shanghai has become a focus of industry attention. As one of the most influential coatings industry events in the Asia Pacific region, this exhibition covers an area of over 105100 square meters and gathers more than 1450 exhibitors from 30 countries and regions. More than 20 silicone companies participated in the exhibition, showcasing a variety of innovative silicone product application solutions.
It is worth noting that several silicone oil companies participating in the exhibition have announced price increases for their leveling agents, substrate wetting agents, defoamers, oil repellents, dispersants and other products, with the increase generally exceeding 2 yuan/KG (2000 yuan/ton), reflecting the impact of rising raw material costs and tight supply being transmitted along the industry chain.