XRG Finalizes Acquisition of Covestro: A New Era in Sustainable Materials
Major Acquisition Approved
XRG, the global investment division of ADNOC, has officially received all necessary regulatory approvals to acquire Germany’s Covestro. This company stands among the top producers of high-performance polymers and sustainable materials. The acquisition, valued at €14.7 billion (approximately $17 billion), marks not only ADNOC’s largest investment to date but also represents one of the biggest foreign takeovers of a European company by a Gulf nation.
The final green light was granted by the German Federal Ministry for Economic Affairs and Energy, clearing the last hurdle for this significant deal.
Covestro’s Global Impact
Covestro’s headquarters are located in Leverkusen, Germany. The company boasts an impressive portfolio of over 10,000 specialty solutions and operates 46 production facilities along with 13 research and development centers around the globe. Its innovative materials play a crucial role in a variety of sectors, including mobility, construction, electronics, and healthcare—all of which are pivotal to the global economy and the ongoing energy transition.
In the fiscal year 2024, Covestro reported sales of around €14.2 billion (about $16.35 billion), employing close to 17,500 professionals by the year’s end.
Future Operations Under New Management
Once the transaction completes—expected within days—Covestro will maintain its headquarters in Germany and will continue to function under its existing management team. XRG plans to work closely with Covestro’s leadership to pinpoint further opportunities aimed at enhancing operational efficiency, bolstering resilience, and creating long-term value in the coming phases of growth.
This acquisition not only broadens XRG’s international presence in advanced materials but also aligns with its strategy to establish a top-three global chemicals platform.
Vision for Long-Term Partnership
Dr. Rainer Seele, President of Global Chemicals at XRG, expressed enthusiasm about the acquisition, stating, “Securing these regulatory clearances allows us to move forward and focus on establishing a long-term, stable partnership with Covestro.” He added that this acquisition significantly strengthens XRG’s position in the chemicals sector, paving the way for the firm to pursue its goal of becoming one of the top global investors in this field.
Dr. Seele emphasized respect for Covestro’s workforce and expertise, highlighting a commitment to working collaboratively to unlock the company’s full potential.
Covestro’s Innovative Product Range
Covestro’s materials are integral to numerous everyday applications in modern industry. For example, their lightweight polymers enhance the performance of electric vehicles and wind turbine blades, while high-performance films safeguard semiconductors and smartphones. Specialized coatings developed by Covestro also make eyeglass lenses scratch-resistant and contribute to durable passports.
Leadership’s Enthusiastic Outlook
Dr. Markus Steilemann, CEO of Covestro, articulated his excitement about this new chapter for the company. He remarked, “With XRG as a strong and long-term-oriented partner, we will drive innovation and digital transformation, scale circular solutions, and set new standards in the chemical industry.” He also noted that this partnership embodies shared ambitions for a successful future and offers mutual benefits for customers, suppliers, employees, and all stakeholders involved.
This acquisition not only strengthens XRG’s position in the chemicals sector but sets the stage for cultivating a sustainable future through collaborative innovation and strategy.
