ADNOC's global energy investment arm XRG announced on Thursday that it would become the majority shareholder of Covestro, after the German chemicals company’s shareholders accepted a takeover offer.

Shares tendered and already bought by XRG amount to 91.32 per cent of Covestro's total outstanding shares, XRG said in a statement.

XRG will become the new majority shareholder of Covestro AG, a world leader in high-quality polymer materials, subject to outstanding regulatory approvals. Today’s announcement marks a significant milestone in XRG’s ambitious growth strategy to become a top five global chemicals player, while unlocking new growth opportunities.

“Today’s significant milestone marks the first major transformational investment for XRG in chemicals, accelerating our ambition to become a top five global chemicals player, as we strive to meet the growing global demand for energy and chemical products, and accelerate the transition towards a circular economy,” said Dr. Sultan Al Jaber, Executive Chairman, XRG

“We are very pleased that so many of our shareholders have followed our recommendation and accepted the offer. This is very good news for Covestro, our employees and all other stakeholders. The strategic partnership with ADNOC is exactly the right step for Covestro at the right time,” says Dr. Markus Steilemann, CEO of Covestro.

"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. As part of the XRG Group and following the closing of the transaction, we will be in a position to further accelerate our ongoing transformation.”

XRG sees Covestro as the foundational platform of its Performance Materials and Specialty Chemicals business and is convinced of Covestro's strategic perspective and its vision to become fully circular. The takeover of Covestro marks a significant milestone in XRG’s strategy to become a top five global chemicals player.

The offer will be subject to customary closing conditions in relation to merger control, foreign investment control, EU foreign subsidies clearances. Closing is not expected before the second half of 2025.