XRG, the international investment arm of ADNOC, has received all final regulatory approvals for its acquisition of Germany’s Covestro, one of the world’s leading producers of high-performance polymers and sustainable materials.
Reportedly valued at EUR14.7 billion (US$17 billion), it is ADNOC’s biggest acquisition yet and one of the largest foreign takeovers of an EU company by a Gulf state. All hurdles were cleared with the final outstanding approval from the German Federal Ministry for Economic Affairs and Energy.
Headquartered in Leverkusen and with a portfolio of over 10,000 specialty solutions, Covestro operates 46 production sites and 13 R&D centres worldwide, supporting sectors such as mobility, construction, electronics, and healthcare, industries central to the global economy and the energy transition.
Covestro generated sales of EUR14.2 billion (US$16.35 billion) in fiscal year 2024. At the end of 2024, the company employed approximately 17,500 people.
Following completion of the transaction, expected in the next few days, Covestro will remain headquartered in Germany and continue to operate under its existing management.
XRG will collaborate with Covestro’s management to identify further opportunities to enhance operational efficiency, strengthen resilience and capture long-term value as the company enters this next phase.
The acquisition helps XRG expand its international footprint in advanced materials and accelerate its strategy to build a top-three global chemicals platform.
Dr Rainer Seele, President of Global Chemicals at XRG, said: “Securing these regulatory clearances allows us to move forward and focus on establishing a long-term, stable partnership with Covestro.
“This acquisition strengthens XRG’s international footprint in chemicals and supports our ambition to become a top-three global investor in the sector. We have deep respect for Covestro’s people and expertise, and we look forward to working closely with its management team to realise the company’s full potential.”
Covestro’s materials are widely used in daily life and modern industry. Its lightweight polymers strengthen electric vehicles and wind-turbine blades; its high-performance films protect semiconductors and smartphones; and its specialised coatings make eyeglass lenses scratch-resistant and passports durable.
Dr Markus Steilemann, CEO of Covestro, said: “This is an exciting new chapter for Covestro.
“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. Together, we are well-positioned to take our ‘Sustainable Future’ strategy to the next level. “Our partnership reflects not only shared goals and ambitions for a successful future and a new chemical era, but also mutual benefits and opportunities for both Covestro and XRG as well as for our customers, suppliers, employees and all other stakeholders.”
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