XRG, the international investment arm of ADNOC, has received all final regulatory approvals for its acquisition of Covestro, one of the world’s leading producers of high-performance polymers and sustainable materials.
The approval was granted by the German Federal Ministry for Economic Affairs and Energy under Germany’s Foreign Direct Investment regime, following the European Commission’s approval under the EU Foreign Subsidies Regulation.
Through this acquisition, XRG expands its international footprint in advanced materials and accelerates its strategy to build a top-three global chemicals platform.
With this milestone, Covestro and XRG will embark on their joint journey to redefine the chemical industry through innovation, circularity, driving digital transformation, and strengthening the pioneering role in high-growth sectors.
Dr. Rainer Seele, President of Global Chemicals at XRG, said that, “Securing these regulatory clearances allows us to move forward and focus on establishing a long-term, stable partnership with Covestro.”
“This acquisition strengthens XRG’s international footprint in the chemicals sector and supports our ambition to become one of the top three global investors in the industry. We have deep respect for Covestro’s people and expertise, and we look forward to working closely with its management team to realize the company’s full potential,” Dr. Seele added.
Dr. Markus Steilemann CEO – Covestro
“Joining forces with XRG marks an exciting new phase for Covestro. With XRG as a strong and long-term-oriented partner, we will drive innovation and digital transformation, scale circular solutions – and take our ‘Sustainable Future’ strategy to the next level. Our partnership reflects not only shared goals and ambitions for a successful future and a new chemical era, but also mutual benefits and opportunities for both Covestro and XRG. I am convinced that together we can unlock new opportunities and set new standards for the chemical industry.”
Following completion of the transaction, expected in the coming days, Covestro will remain headquartered in Germany and continue to operate under its existing management.
XRG will collaborate with Covestro’s management to identify further opportunities to enhance operational efficiency, strengthen resilience, and capture long-term value as the company enters this next phase.
Covestro
Headquartered in Leverkusen, Germany, and with a portfolio of over 10,000 specialty solutions, Covestro operates 46 production sites and 13 R&D centers worldwide, supporting sectors such as mobility, construction, electronics, and healthcare, industries central to the global economy and the energy transition.
Covestro’s materials are widely used in daily life and modern industry. Its lightweight polymers strengthen electric vehicles and wind-turbine blades; its high-performance films protect semiconductors and smartphones; and its specialized coatings make eyeglass lenses scratch-resistant and passports durable. From hospitals to homes, cars to data centers, Covestro’s advanced materials help make products safer, longer lasting, and more sustainable.
