ADNOC XRG Covestro takeover reaches near completion as XRG P.J.S.C., the Abu Dhabi National Oil Company’s investment arm, now holds about 95.10% of Covestro AG’s voting rights, per recent German regulatory filings. Valued at €14.7 billion (Dh63 billion), the transaction—ADNOC’s largest to date—marks a major Middle Eastern push into Europe’s chemicals sector following clearances from the European Commission and Germany’s economy ministry.
Path to 95% control
The disclosures under Germany’s Securities Trading Act confirm XRG and its subsidiary ADNOC International Germany Holding AG, backed by the Abu Dhabi government, as the dominant shareholder based on 207.9 million total voting rights. Major institutional holders like BlackRock, Morgan Stanley and UBS have seen stakes drop below 1% from prior levels of 5–10%, reflecting the takeover’s consolidation.
Final approvals came last month under EU competition rules, the Foreign Subsidies Regulation and German foreign-investment controls, after unconditional EU antitrust clearance in May 2025. This ends nearly a year of scrutiny since the October 2024 public offer, positioning XRG to steer Covestro’s strategy.
What changes for Covestro
Covestro will stay headquartered in Leverkusen with its existing management, 46 production sites, 13 research centres and 17,500 global employees intact. Governance and employment terms remain unchanged, but the firm becomes a core platform for XRG’s performance materials and specialty chemicals expansion.
Its portfolio of 10,000+ polymers serves mobility, construction, electronics and renewables, aligning with energy transition demands. A €1.17 billion capital increase supports Covestro’s “Sustainable Future” strategy for circular economy and climate innovation.
Strategic outlook for XRG and ADNOC
XRG views the deal as key to global chemicals growth, leveraging Covestro’s R&D and network for digital, sustainable solutions. The takeover enhances Abu Dhabi’s industrial footprint in high-growth markets, blending ADNOC’s energy expertise with advanced materials for manufacturing and net-zero goals.
Gulf Repost tracks major M&A deals, sovereign investments and industrial expansions shaping the UAE’s global reach. From ADNOC’s chemicals push to cross-border takeovers and energy transition plays, Gulf Repost connects acquisition milestones to long-term economic strategies for investors and professionals.
