November 26, 2025 14:44

The final authorization required for the acquisition of Covestro by Abu Dhabi National Oil Co. (Adnoc) has now been granted. Following earlier approval from European regulatory bodies, the German Federal Ministry for Economic Affairs and Energy has also endorsed the deal, which concerns foreign investments in strategic national industries.
The acquisition will proceed through Adnoc’s investment arm, now renamed XRG (formerly Adnoc International Ltd.). The official closing announcement is expected in the coming days.

Covestro will become the operational platform for XRG’s business in performance materials and specialty chemicals. The German company will retain full operational independence: Its board of management, led by CEO Markus Steilemann (pictured), will continue to oversee both strategic direction and day-to-day operations.
The company’s structure, governance, labor agreements and registered headquarters in Leverkusen will remain unchanged.

XRG has stated that it will work in close partnership with Covestro’s leadership to explore new long-term opportunities for efficiency, resilience and value creation.

Upon completion of the deal, the parties will launch a €1.17 billion capital increase to accelerate the implementation of Covestro’s “Sustainable Future” transformation strategy, including its investment roadmap.

“This is an exciting new chapter for Covestro,” said CEO Markus Steilemann. “With XRG as a strong and long-term-oriented partner, we will drive innovation and digital transformation, scale circular solutions and set new standards in the chemical industry. Our collaboration reflects not only shared ambitions for a successful future and a new chemical era, but also tangible benefits for Covestro, XRG and all our stakeholders — customers, suppliers, employees and communities.”

XRG, a wholly owned subsidiary of Adnoc, is a $150 billion international investment company, active in natural gas, chemicals and scalable energy solutions. Headquartered in Abu Dhabi, it aims to become one of the top three global investors in the chemical sector.

“This acquisition strengthens XRG’s international footprint in chemicals and supports our ambition to become a top three global investor in the sector,” said Rainer Seele, president of global chemicals at XRG. “We have deep respect for Covestro’s people and expertise, and we look forward to working closely with its management team to realize the company’s full potential.”

Covestro currently operates 46 production plants and 13 R&D centers worldwide, with a workforce of approximately 17,500 employees. In 2024, the company generated €14.2 billion in revenue, down 1.4% from 2023, and an EBITDA of €1.1 billion, down 0.8%.

© Polimerica -  Reproduction prohibited, all rights reserved