XRG, the International Investment arm of Adnoc, has received all final 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 the largest acquisition of adnoc to date and one of the largest acquisitions of an EU company by a Gulf State. All issues were cleared with the final outstanding approval from the German Federal Economic and Energy Commission.
HeadQueperwed in Levekusen and with a portfolio of more than 10,000 specialized solutions, Covelto operates 46 production centers and 13 R & D centers around the world, electronics manufacturing, and health care, middle industries and the global economy and energy transition.
Cocestostro generated sales of EUR14.2 billion (US $16.35 billion) in the financial year 2024. At the end of 2024, the company employed about 17,500 people.
After the transaction is completed, which is expected in the next few days, Covelto will remain headquartered in Germany and continue to operate under its existing management.
XRG will work with Cocestro management to identify other opportunities to improve operational efficiency, strengthen sustainability and capture long-term value as the company moves into its next phase.
The acquisition helps XRG expand its international footprint with advanced materials and accelerate its strategy to build a top three chemical platform.
Dr Rainer Seele, President of global chemicals at XRG, said: “Getting this regulatory clearance allows us to move forward and focus on maintaining a long-term, stable relationship with Cocestro.
“This acquisition strengthens XRG’s footprint in pharmaceuticals and supports our ambition to be a global investor in the people sector. We have deep respect for Concestro’s people and technology, and look forward to working closely with its management team.”
Covelro materials are widely used in daily life and modern industry. Its lightweight polymers strengthen electric vehicles and turbines; Its efficient films protect semiconductors and smartphones; And its special coatings make the eyeglasses resistant and durable.
Dr Markus Steilemann, CEO of Covestro, said: “This is an exciting new chapter for Concestro.
“With XRG as a strong and direct partner, we will drive innovation and round solutions, and we are well positioned to take our skills and the new chemical era, but also the benefits of both CoveTro and XRG Our customers, suppliers, employees and all other stakeholders.”
