ADNOC clinches $17B Covestro deal after regulatory battle
Coming out on top after more than a year of scrutiny by European regulators, ADNOC has secured a 95% stake in Germany’s Covestro, completing the largest acquisition in the UAE energy firm’s history and deepening its push into chemicals.
The deal values the specialty materials maker at roughly $17 billion, and gives ADNOC control through its investment arm XRG and affiliated holding companies, Covestro said in a report to the Frankfurt Stock Exchange on Tuesday.
Covestro produces polymers and advanced materials used in the automotive, construction and electronics industries. The acquisition strengthens Adnoc’s strategy to diversify beyond oil and gas, and build a global chemicals portfolio.
The transaction cleared 14 months of regulatory probes in Europe, including review under the European Union’s foreign subsidies rules. Germany’s Economic Ministry gave the deal its final approval on Nov. 5.
Covestro said earlier that upon closing of the deal, the company would proceed with a $1.4 billion capital increase for strategic investment and further execution of its sustainability program.