May 9, 2025 – According to a Reuters report on May 6, the €14.7 billion (about $16.6 billion) acquisition of German chemical producer Covestro by Abu Dhabi National Oil Company (ADNOC) is set to receive unconditional antitrust approval from the European Commission. This landmark deal, ADNOC’s largest to date, signals a significant strategic shift among Middle Eastern energy companies towards diversification and reduced dependence on oil.
The deal, which was first announced in 2024, has already passed through the initial acceptance phase, with ADNOC’s international investment arm, XRG, securing 91.3% of Covestro’s shares by the end of the additional acceptance period in December 2024. The acquisition, subject to regulatory approvals, is expected to close in the second half of 2025.
The European Commission, the EU’s antitrust authority, has found no competition concerns with the proposed acquisition, given the lack of operational overlap between ADNOC and Covestro. “XRG and Covestro are working constructively with all relevant authorities on the FSR, FDI, and merger control filings. We are confident that all outstanding approvals can be obtained within the long – stop date (December 2, 2025),” Covestro stated in an email.
Covestro, a global leader in high – performance polymers and sustainable material solutions, supplies key industries such as automotive, construction, and electronics. Once the acquisition is complete, XRG will become the majority shareholder of Covestro, marking a new chapter in the German company’s history.
The deal has already received clearance from competition authorities in South Africa and India, but it still needs to comply with the EU’s Foreign Subsidies Regulation (FSR), which aims to prevent unfair competition from non – EU companies receiving state aid. Notably, ADNOC previously secured unconditional EU approval under the FSR for its acquisition of fertilizer company Fertiglobe.
This acquisition is part of ADNOC’s broader strategy to expand its footprint in the global chemicals sector and diversify its energy portfolio. As the global energy sector continues to shift towards cleaner alternatives, ADNOC’s move into the chemicals industry is seen as a strategic step towards long – term sustainability and growth.
Industry analysts view this acquisition as a significant move for ADNOC, positioning it as a major player in the global chemicals market. The company’s proactive approach to regulatory compliance and strategic investments reflects its commitment to sustainable growth and adaptation to the evolving energy landscape.