Brussels, 6 May 2025 — Abu Dhabi National Oil Company (ADNOC) is poised to receive unconditional approval from the European Commission for its €14.7 billion ($16.6 billion) acquisition of German chemical manufacturer Covestro. This landmark deal, ADNOC’s largest to date, underscores the strategic shift of Middle Eastern energy firms towards diversification and reduced reliance on oil.
Regulatory Green Light
Sources indicate that the European Commission, the EU’s antitrust authority, has found no competition concerns with the proposed acquisition, given the lack of operational overlap between ADNOC and Covestro. The Commission’s decision is expected by 12 May 2025.
“XRG and Covestro are working constructively with all relevant authorities on the FSR, FDI, and Merger Control filings. We are confident that all outstanding approvals can be obtained within the long-stop date (02.12 … ).”
Strategic Implications
Upon completion, ADNOC’s international investment arm, XRG, will become the majority shareholder of Covestro. This acquisition aligns with ADNOC’s broader strategy to expand its footprint in the global chemicals sector and diversify its energy portfolio.
The deal has already received clearance from competition authorities in South Africa and India. However, it remains subject to the EU’s Foreign … which addresses concerns over unfair state support for non-EU companies. Notably, ADNOC previously secured unconditional EU approval under the FSR for its … fertilizer company Fertiglobe.
Market Reaction and Future Outlook
Industry analysts view this acquisition as a significant move for ADNOC, positioning it as a formidable player in the global chemicals market. The company’s proactive approach to regulatory compliance and strategic investments reflects its commitment to sustainable growth and adaptation to the evolving energy landscape.
As the global energy sector continues to navigate the transition towards cleaner alternatives, ADNOC’s acquisition of Covestro marks a pivotal step in its journey towards diversification and long-term resilience.