XRG completes Covestro acquisition, strengthening its global chemicals strategy, boosting Covestro’s balance sheet, and advancing ambitions to become a top chemical investor.
XRG P.J.S.C. has taken a major step forward in expanding its global footprint in the chemicals sector with the completion of its acquisition of Covestro AG. The transaction was formally executed through ADNOC International Germany Holding AG, a wholly owned indirect subsidiary of XRG, which successfully finalized its voluntary public takeover offer to Covestro’s shareholders. Covestro, widely recognized as one of the world’s leading producers of high-performance polymer materials, now officially becomes part of XRG’s growing international portfolio.
This acquisition marks a significant milestone for XRG as it positions the company to accelerate its strategic growth plans within the global chemicals industry. Covestro’s expertise, extensive product range, and reputation for innovation will serve as crucial assets in strengthening XRG’s competitive standing. By integrating Covestro’s capabilities and global reach, XRG aims to fast-track its ambition of becoming one of the top three chemical investors worldwide.
Covestro has long been known for manufacturing high-quality polymers used in diverse sectors, including automotive, construction, electronics, healthcare, and renewable energy technologies. Its solutions contribute to lightweight applications, energy efficiency, and advanced material performance across industries. With the support of XRG, Covestro is expected to scale these capabilities further while accelerating its long-term development goals. XRG has expressed strong confidence in Covestro’s existing management team and intends to collaborate closely with them to maximize the company’s full potential under its new ownership.
A major component of the acquisition involves strengthening Covestro’s financial foundation. To support the company’s stability and future growth trajectory, XRG is undertaking a capital increase amounting to €1.17 billion. This infusion of capital is expected to reinforce Covestro’s balance sheet, improve liquidity, and ensure a solid financial structure for upcoming operational and strategic initiatives. The strengthened balance sheet will also provide Covestro with greater flexibility to pursue innovation, expand its production capabilities, invest in sustainability-driven technologies, and remain resilient in the face of global market shifts.
For XRG, the acquisition aligns with its broader investment strategy focused on scaling its presence in high-value global sectors. Integrating Covestro into its portfolio allows XRG to access advanced manufacturing technologies and research capabilities, crucial for maintaining long-term competitiveness in the fast-evolving chemical landscape. Moreover, XRG’s strong financial backing and global industry partnerships are expected to enable Covestro to accelerate its efforts in materials science, circular economy solutions, and climate-friendly production methods.
Overall, the successful completion of this acquisition signals the beginning of a collaborative growth phase for both companies. With XRG’s strategic direction and Covestro’s technological strengths, the partnership is expected to drive innovation, expand market reach, and reinforce both companies’ positions in the global chemical and materials industries. The transaction highlights XRG’s ambition to evolve into a major global force while offering Covestro the financial stability and strategic support needed to reach new heights.
