ADNOC's XRG Completes Covestro Takeover, Creating Global Chemical Giant
ADNOC International, now rebranded as XRG, has completed a takeover of Covestro, Germany's largest polymer manufacturer. The deal, valued at 11.7 billion euros, gives XRG a 91.3% stake in Covestro, marking the end of the independent Covestro share era. The takeover, approved unconditionally by the EU Commission in May 2025, offers a 54% premium to shareholders, with each Covestro share fetching 62 euros.
The acquisition creates one of the world's five largest chemical companies. XRG, a strategic and long-term investor according to Klaus Froehlich, Chief Investment Officer of ADNOC, promises to support Covestro's sustainability strategy. The goal is to achieve climate neutrality for the entire value chain by 2035 and 2050.
The 'STRONG' program, aimed at saving 400 million euros per year until 2028, is expected to boost Covestro's profitability. The remaining Covestro shareholders, holding 8.7% of the shares without voting rights, have little influence on the company's future.
The foreign trade promotion regulation review for Covestro is ongoing, with a decision expected by the end of November 2025. Meanwhile, the EU Commission is still checking for unfair advantages from state subsidies under the foreign subsidy regulation.
The Covestro takeover by XRG, completed at a transaction volume of 11.7 billion euros, positions XRG among the global chemical industry leaders. With XRG's commitment to sustainability and the 'STRONG' program's potential, Covestro's future looks promising. However, the final say on the takeover's legality remains with the EU Commission's ongoing reviews.
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