German approval clears Covestro acquisition by XRG

Leverkusen, Germany – Covestro AG and XRG PJSC (formerly Adnoc International) have received the final outstanding regulatory approval for XRG’s acquisition of a majority stake in the German chemicals supplier, it was announced 21 Nov.

Under the deal, expected to be completed “in the coming days,” Covestro will continue to operate with its existing corporate structure, governance standards and registered headquarters in Leverkusen.

The German company will serve as “the foundational platform” for XRG’s performance materials and speciality chemicals business.

The merger will support Covestro’s plans to scale its circular technologies and advance its digital transformation, said CEO Dr Markus Steilemann who will continue to lead Covestro post-acquisition.

Dr Rainer Seele, XRG’s president of global chemicals, said the approval enables the partners to “move forward and focus on establishing a long-term, stable partnership,” describing the transaction as strengthening XRG’s international chemicals position.

Upon closing, Covestro will launch a €1.17-billion capital increase to support investment plans under its “sustainable future” strategy, while XRG will act as a long-term shareholder.