Covestro and XRG receive final regulatory approval for partnership

Covestro AG (Frankfurt: 1COV) and XRG P.J.S.C. received final regulatory approval from the German Federal Ministry for Economic Affairs and Energy for their strategic partnership, the companies announced. The approval fulfills all closing conditions for the transaction, which is expected to close in the coming days.

The German Foreign Investment Control approval was the final regulatory hurdle for the partnership between the polymer materials manufacturer and XRG, formerly ADNOC International Limited. Upon closing, Covestro will receive a EUR 1.17 billion capital increase to support its strategic investment plans.

"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," said Dr. Markus Steilemann, CEO of Covestro.

Under the partnership terms, Covestro will serve as the foundational platform for XRG's Performance Materials and Specialty Chemicals business. The company will retain its autonomy, with its Board of Management continuing to oversee operational management and strategic direction. Covestro will maintain its corporate structure, German corporate governance standards, and headquarters in Leverkusen.

XRG, an international investment company with an enterprise value of $150 billion, is wholly owned by ADNOC and headquartered in Abu Dhabi. The company invests across natural gas, chemicals and energy solutions.

Covestro generated sales of EUR 14.2 billion in fiscal year 2024 and employed approximately 17,500 people at the end of 2024. The company operates 46 production sites worldwide and manufactures polymer materials for industries including mobility, construction, and electronics.

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