May 14, 2025 14:35

The European Commission has officially approved, under the EU Merger Regulation, the acquisition of German chemical company Covestro by Abu Dhabi National Oil Co. (Adnoc). The transaction, first announced last year, had already seen a public takeover bid completed—pending standard closing conditions, including regulatory approvals (see article).

Brussels concluded that the deal raises no competition concerns, given the limited market overlap between the two companies. The Commission's investigation confirmed that Adnoc and Covestro operate mainly at different levels of the chemical and petrochemical supply chain, with no meaningful overlap between their respective activities.

The Commission also found that, following the transaction, the companies would not be in a position to either restrict competitors’ access to important inputs or limit access to a sufficient customer base.

With the takeover bid completed at the end of last year, Adnoc International Germany Holding—indirectly controlled by XRG (formerly Adnoc International, the Emirati group’s foreign investment arm)—acquired more than 91% of Covestro’s share capital, in a deal valued at approximately €14.7 billion.

The transaction is expected to close in the second half of 2025.

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