Abu Dhabi National Oil Company Nears Acquisition of German Chemical Firm Covestro
by Oh Jieun
Published 25 Nov.2025 08:51(KST)
Independent Operations to Continue After Acquisition
Expanding Beyond Oil and Gas Into Chemicals and More
Abu Dhabi National Oil Company (ADNOC) is accelerating the expansion of its chemical business. The partnership that ADNOC's investment subsidiary XRG has been pursuing with German advanced materials company Covestro has effectively been finalized, as the deal has received final approval from the German government's foreign investment review. The remaining procedures are expected to be completed within a few days.
On November 25, Covestro announced that it had fulfilled all conditions required for acquisition by XRG. Through this collaboration, the two companies plan to jointly pursue the development of future materials, recycling-based production, and AI-driven digital transformation. However, Covestro will continue to operate independently following the acquisition. Its headquarters will remain in Germany, and the current CEO and management team will be retained.
This deal is considered a significant step for ADNOC as it moves beyond its traditional oil and gas-focused structure to expand into the chemical and materials sectors. XRG was established as an investment platform for ADNOC to enter the global chemical market in earnest. Markus Steilemann, CEO of Covestro, stated, "This partnership will bring new opportunities for customers, suppliers, and employees alike." XRG also expressed its intention to "establish a long-term partnership in earnest."
With this partnership, Covestro will conduct a capital increase worth 1.17 billion euros (approximately 1.98 trillion won). Through this, the company aims to strengthen its mid- to long-term strategy centered on eco-friendly and advanced materials, and to enhance business stability by leveraging XRG's energy transition technologies.
In recent years, ADNOC has been actively expanding its investments in the chemical sector as part of its efforts to diversify its global business portfolio. Covestro is a global company that supplies high-performance polymer materials to key industries such as automotive, electronics, and construction. It operates 46 production facilities worldwide, and its 2024 sales reached 14.2 billion euros.
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