ADNOC Set to Secure EU Green Light for Covestro Takeover: A New Era in Chemicals

Abu Dhabi’s state oil giant ADNOC is poised to receive unconditional approval from EU antitrust regulators for its €14.7 billion ($16.6 billion) acquisition of German chemical giant Covestro, according to sources familiar with the matter. The landmark deal, ADNOC’s largest-ever, marks a significant move by Middle Eastern energy players to diversify beyond oil and expand into global chemicals and advanced materials.

 

Key Highlights:

 

EU antitrust regulators are expected to officially clear the deal by May 12, 2025, following a thorough review. The decision comes with no conditions attached, signaling confidence that the acquisition will not harm competition in the European market.

 

ADNOC’s takeover bid for Covestro, first struck in October 2024, has already achieved overwhelming shareholder support, with ADNOC securing 91.3% of Covestro’s outstanding shares after the acceptance period ended in December 2024.

 

Covestro’s CEO, Dr. Markus Steilemann, welcomed the deal, highlighting the strategic partnership’s potential to accelerate Covestro’s transformation and sustainability agenda. Covestro will serve as the cornerstone of ADNOC’s (now XRG) global chemicals ambitions, aiming to become a top-five player in the sector.

 

The acquisition reflects a broader trend among Gulf energy giants investing heavily in petrochemicals to future-proof their businesses amid the global energy transition.

 

With EU approval imminent, the ADNOC-Covestro deal is set to reshape the global chemicals landscape and underscores the growing influence of Middle Eastern investors in Europe’s industrial sector.

 

Sources: Reuters, CompositesWorld, AGBI