Adnoc’s XRG to take over Germany’s Covestro

Covestro

XRG, the low-carbon and chemicals investment company founded by Abu Dhabi National Oil Company (Adnoc), is to become a major shareholder of German chemicals producer Covestro.

The $16.3 billion takeover offer from Adnoc International Germany Holding, a wholly owned indirect subsidiary of XRG, has exceeded the minimum acceptance threshold, reaching 69.94 percent as of November 27.

The additional acceptance period starts on Tuesday, allowing Covestro shareholders to accept the offer until December 16.

The Adnoc unit plans to announce the final result on December 19.

On November 7, the Covestro board recommended that shareholders accept Adnoc’s takeover offer.

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The takeover is subject to regulatory conditions, including merger control, foreign investment control and EU foreign subsidies regulation clearances.

XRG said the transaction expected to close in the second half of 2025.

The Covestro board will support delisting and/or a squeeze-out if XRG intends to execute either.

Last month, Adnoc launched the $80 billion XRG,  which aims to more than double its asset value over the next decade by capitalising on the demand for low-carbon energy and chemicals.