Adnoc With $150 Billion Turns Into Top Dealmaker

We spoke about their revised bids upwards for Covestro, but it seems it's part and parcel of a broader strategy. They're they're building up their war chest. That's right. Well, they've got, they've got a big budget anyway. So about 18 months ago, the UAE President, Sheikh Mohammed bin Zayed gave them this $150 billion five year budget. That's not only for acquisitions, but that goes to increasing oil and gas production. But a real part of that is looking at these these new outward investments, international investments, which is a new thing for ADNOC. They had for years been basically a crude producer and and seller only to Asia effectively. Now they're branching out looking at assets in the United States, in Africa and Europe. The deal we're talking about now is this Covestro deal, which took a a step forward. Earlier this week, we talked about it on the show on Tuesday when, when they did increase that offer and get into due diligence. Now that deal would be the biggest international investment by a golf company. So we've we've seen some lots of offers from the Gulf, but they've they've mainly been portfolio investors in companies getting into things like tech. Of course we know about the sports teams, the fancy hotels. Now they're looking to be a little bit more strategic in general across the Gulf and and taking up some more assets that can help the economic transitions here. But so far we haven't seen that that one big deal, that single one takeover, which would be this one. So if ADNOC does. Clinch this deal. That would be the biggest international investment from a gold company. You raise a good point because it's not just about getting a piece of the pie. In this case, they are buying the pie. Yeah, but but how does this acquisition fit into their overall strategy? Is this a a part of a move to move from upstream to downstream? Is this part of it? Yeah. They're going to continue increasing production capacity here and they see markets for that going forward. As as we continue to use hydrocarbons, but they're also looking for their affiliate in terms of things like plastics, different kinds of coatings for plastics, the things that go into our everyday items that we use like mobile phones, like electric cars, plastic bumpers, interiors, things like that. So as we go down that that transition Rd. they want to be ready to supply those products. So that's why they're looking into chemicals in the case of Covester and lots of natural gas. We've talked about those smaller deals that they've made buying into stakes for LNG production and and getting LNG supplies for themselves so. They want to get into that moving those products around the world as well as well as producing them. So that's that's kind of the Nexus of this strategy that now adults following.