Adnoc's newly launched lower-carbon energy and chemicals investment company XRG secured a 91.32% stake in Covestro ($1COV) after the German polymer materials manufacturer's shareholders accepted the offer. "The strategic partnership with Adnoc is exactly the right step for Covestro at the right time," Covestro Chief Executive Markus Steilemann noted.
"With Adnoc respectively XRG as strong and long-term-oriented partner, we will be able to execute on our 'Sustainable Future' strategy even more consistently." Adnoc signed an agreement in October to launch a public takeover offer for Covestro's outstanding shares at 62 euros per share, implying an equity value of 11.7 billion euros.
The transaction is slated to close in the second half of 2025. The acquisition marks a significant step in XRG's strategy to become the global chemicals industry's top-five player. Covestro's expertise in performance materials and specialty chemicals aligns with XRG's goal of meeting the rising global demand for energy and chemical products while advancing the transition to a circular economy. XRG also emphasized its full commitment to Covestro's Sustainable Future strategy.
As part of this pledge, it will provide additional funding through a 10% capital increase in Covestro's share capital at the offer price. This funding will be facilitated at the closing of the transaction and excludes subscription rights. The transaction's regulatory hurdles include merger control, foreign investment approvals, and European Union Foreign Subsidies Regulation clearances.
Both companies have expressed confidence in addressing these requirements and have reiterated their dedication to a smooth integration process. Price: $56.34, Change: $-0.060, Percent Change: -0.11% $1COV.