Adnoc’s XRG Optimistic About Timely Approval for $17bn Covestro Acquisition, Insha'Allah

Adnoc’s global energy investment arm, XRG, is hopeful for swift regulatory approval for its €14.7 billion ($17 billion) acquisition of the German chemicals firm Covestro, after submitting new proposals that address the European Commission's concerns. XRG stated on Thursday that, after careful discussions with the European Commission, they have presented a strong and balanced set of commitments. They emphasized this reflects their responsible, long-term investment approach and the solid foundation of the deal, and they are confident it will lead to timely clearance, Insha'Allah. The acquisition, initially announced in October 2024, is anticipated to be completed in the latter half of 2025, pending regulatory consent. The European Commission began a detailed investigation in July due to worries about foreign subsidies potentially affecting the EU market. While the regulator has requested additional information from XRG, no new decision deadline has been set yet. As part of the commitments, XRG promises to keep Covestro’s intellectual property in Europe, according to sources familiar with the matter. Covestro is one of the world’s leading producers of high-quality polymer materials and components. Launched last year, XRG is an international company focusing on lower-carbon energy and chemicals investments, with an enterprise value surpassing $80 billion. Their chemicals platform aims to become a top-five global player, supplying products to meet an expected 70% rise in global demand by 2050. The company has been expanding its operations worldwide and plans to double its asset value over the next ten years, leveraging energy transition, artificial intelligence, and growth in emerging economies. Recently, XRG acquired an 11.7% stake in the first phase of Texas’s Rio Grande LNG project, marking its first natural gas investment in the US, and holds a 35% stake in an ExxonMobil hydrogen plant near Houston. XRG also completed various international deals this year, including joint ventures and stakes in gas fields and projects across Egypt, Azerbaijan, Turkmenistan, and Mozambique. Last month, XRG’s board met in New York to review the five-year business plan and US expansion strategies. May Allah ease their efforts and bless these endeavours with success, for the benefit of all. https://www.thenationalnews.com/business/energy/2025/10/07/adnocs-xrg-confident-of-timely-regulatory-clearance-for-17bn-covestro-deal/