Adnoc’s $13b Covestro takeover clears key EU antitrust hurdle

Dubai: Abu Dhabi’s state-owned energy giant Adnoc secured a key unconditional antitrust approval from the European Commission for its proposed €14.7 billion ($16.3 billion) acquisition of German chemicals group Covestro.

The decision, granted late Tuesday, removes a key regulatory obstacle and paves the way for the largest international deal in Adnoc’s history.

The EU concluded that the merger poses no competition concerns, as both companies primarily operate in different parts of the chemical and petrochemical supply chains. Regulators said there’s no risk of restricted access for competitors to key inputs or customers. Authorities in South Africa and India have also approved the deal without conditions.

The move is part of Adnoc’s broader strategy to diversify beyond oil and build a global footprint in downstream and low-carbon sectors. Covestro’s strong presence in advanced materials and sustainable technologies makes it a strategic fit.

Covestro, headquartered in Germany’s industrial heartland, is a leading global producer of polycarbonates, polyurethanes, and other performance materials. Its products are found in everything from smartphone casings and lightweight vehicle parts to high-tech applications like head-mounted displays and virtual reality systems. The company is also investing heavily in AI-driven R&D to expand its innovation capabilities.

More than half of Covestro’s revenues come from Asia-Pacific and North America, offering ADNOC valuable access to global growth markets. Analysts view the chemical sector’s long-term outlook as robust, with global demand for petrochemicals expected to grow 2% annually through 2050.

Adnoc’s takeover offer—launched last October at €62 per share (Dh254)—values Covestro at around €12 billion ($13.3 billion). The two companies signed an investment agreement after months of negotiations.

This acquisition marks a significant milestone in Adnoc’s international expansion agenda, which is focused on gas, LNG, chemicals, and clean energy. It also reflects a wider push by Gulf energy producers to diversify their portfolios as part of the global energy transition.