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EU Clears ADNOC’s $16.3 Billion Acquisition of Covestro

By  |  May 13, 2025

Abu Dhabi National Oil Company (ADNOC) has secured unconditional approval from European Union (EU) antitrust regulators for its €14.7 billion ($16.3 billion) acquisition of German chemicals firm Covestro, marking a major step in the oil giant’s strategic expansion into the chemical sector.

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    The European Commission announced its decision on Tuesday, stating that the transaction posed no competition concerns due to the limited overlap in business activities between the two companies. According to Reuters, the Commission emphasized that the proposed merger would not significantly impede effective competition within the European Economic Area.

    This approval confirms an earlier report by Reuters, which had indicated that the deal was on track to proceed without regulatory hurdles. The acquisition, ADNOC’s largest to date, highlights the Gulf nation’s broader push to diversify its economic portfolio and reduce reliance on crude oil revenues, particularly as the EU and global energy landscape continue to shift toward renewable and low-carbon sources.

    If completed, the acquisition would result in XRG, ADNOC’s international investment subsidiary, becoming the majority stakeholder in Covestro. The German firm specializes in producing high-performance polymers and chemical materials used in sectors such as automotive manufacturing, construction, and engineering.

    Related: ADNOC Nears EU Approval for $16.6 Billion Covestro Takeover

    Per Reuters, the transaction is part of a larger trend among Middle Eastern energy producers, who are increasingly investing in sectors such as chemicals, technology, and manufacturing in a bid to future-proof their economies.

    Source: Reuters