Covestro AG and XRG P.J.S.C. (formerly ADNOC International Limited, together with its subsidiaries, collectively referred to as “XRG”) have received the final regulatory approval from the German Federal Ministry for Economic Affairs and Energy under foreign investment regulations for their strategic partnership. With this approval, all closing conditions have now been fulfilled, and the transaction is expected to close in the coming days. This milestone sets the stage for Covestro and XRG to jointly advance innovation, circularity, digital transformation, and industry leadership across high-growth sectors.
“This is an exciting new chapter for Covestro,” said Dr. Markus Steilemann, CEO of Covestro. “With XRG as a strong, long-term partner, we will accelerate innovation, scale circular solutions, and redefine industry standards. Together, we are ready to elevate our ‘Sustainable Future’ strategy. Our partnership reflects not only a shared vision for a new era in the chemical industry, but also the mutual opportunities it brings for customers, suppliers, employees, and all stakeholders.”
Dr. Rainer Seele, President of Global Chemicals at XRG, added:
“Securing these regulatory clearances allows us to move forward confidently and build a stable, long-term partnership with Covestro. This acquisition strengthens XRG’s global presence in chemicals and aligns with our ambition to become a top three global investor in the sector. We value Covestro’s people and expertise and look forward to unlocking the company’s full potential together.”
Advancing Covestro’s ‘Sustainable Future’ Strategy
The foundation of the partnership lies in a shared commitment to addressing global megatrends and shaping the future of industries worldwide. By uniting XRG’s scale and global reach with Covestro’s leadership in advanced materials and circular technologies, the two companies aim to unlock new growth opportunities and deliver sustained value.
Upon closing, Covestro’s ongoing transformation will be reinforced through a EUR 1.17 billion capital increase. This injection will support the timely execution of strategic investments and help accelerate Covestro’s ‘Sustainable Future’ strategy.
With XRG as a long-term shareholder, Covestro will continue to advance its circular economy goals, deepen digital transformation through technologies such as AI and quantum computing, and broaden its presence in high-growth sectors including mobility, construction, and electronics. XRG’s experience in energy transition will further support Covestro’s sustainability ambitions by enabling access to cleaner energy and enhancing operational resilience.
A Strong Platform for Long-Term Growth
Under the strategic partnership, Covestro a global leader in high-quality polymer materials — will become the foundational platform for XRG’s Performance Materials and Specialty Chemicals businesses. As per the Investment Agreement, Covestro will retain its operational autonomy and maintain its current corporate structure, German governance standards, and existing works agreements. Its headquarters will remain in Leverkusen.
Covestro’s Board of Management, led by CEO Dr. Markus Steilemann, will continue to guide the company’s strategic direction, while XRG will collaborate closely to identify growth opportunities, enhance efficiency, and strengthen long-term value creation.
This partnership marks the beginning of a transformative journey, positioning both organizations to lead the next wave of innovation and sustainability in the global chemical industry.
