ADNOC Is Close to Completing the Acquisition of Covestro

ADNOC International Germany Holding AG, a wholly owned indirect subsidiary of XRG, has received the remaining regulatory clearances for its acquisition of Covestro from the German Federal Ministry for Economic Affairs and Energy under Germany’s Foreign Direct Investment regime, following the earlier clearance from the European Commission under the EU Foreign Subsidies Regulation. This means that all closing conditions for the transaction have been met and the transaction is expected to close in the coming days.

This transaction could significantly reshape the global chemicals industry. Dr. Markus Steilemann, CEO of Covestro, said that partnering with XRG will strengthen Covestro’s ability to innovate, advance digitalization, and expand circular solutions, pushing its sustainability strategy forward. He believes the collaboration aligns shared ambitions, creates mutual advantages, and positions both companies to set new benchmarks for the chemical industry.

Covestro employs around 17,500 people worldwide and operates 46 production sites and 13 R&D centers. With a portfolio of more than 10,000 products, the company manufactures high-performance materials for industries such as mobility, construction, and electronics. Its technologies support the efficiency of data centers and the growth of artificial intelligence through solutions for thermal management and molding, among others.

XRG’s strategy is to expand its international footprint and build a diversified, future-ready industrial portfolio connecting energy, chemicals, and advanced materials.

Under XRG ownership, Covestro will remain headquartered in Leverkusen and continue operating under its existing management. XRG said it will work with Covestro’s leadership to identify opportunities to enhance operational efficiency, strengthen resilience, and capture long-term value as the company enters its next phase. Covestro’s ongoing transformation will be supported by a EUR 1.17 billion capital increase, enabling the timely execution of strategic investment plans and further advancement of its “Sustainable Future” strategy.