Covestro, Adnoc Finalize Merger Agreement

German chemical company Covestro AG and Abu Dhabi state oil firm Adnoc received final approval on a merger agreement from the German regulators.

Covestro announced the closing conditions of the deal Adnoc, now XRG, Nov. 21.

“This is an exciting new chapter for Covestro,” said Covestro CEO Markus Steilemann. “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.”

Upon closing, Covestro will receive further support in the form of a 1.17 billion euro capital increase, which will enable the timely execution of strategic investment plans and further execution of its sustainability strategy, the company said. 

Covestro will act as the foundational platform for XRG’s performance materials and specialty chemicals business. The company also will retain its autonomy, with its board of management, led by Steilemann, continuing to oversee operational management and strategic direction.

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, the company said.

Covestro will maintain its corporate structure, German corporate governance standards and existing general works agreements along with its registered headquarters in Leverkusen.