Covestro-XRG merger receives final regulatory approval
Covestro AG and XRG P.J.S.C., formerly ADNOC International Limited, received the final outstanding regulatory approval from the German Federal Ministry for Economic Affairs and Energy under foreign investment rules for their strategic partnership.
The strategic partnership between Covestro and XRG has received final outstanding regulatory approval.
Thereby, all closing conditions of the transaction are fulfilled. The closing is expected to take place in the coming days. Upon closing, Covestro’s ongoing transformation will be further supported by a EUR 1.17 billion capital increase, which will enable the timely execution of strategic investment plans and further execution of its ‘Sustainable Future’ strategy.
With XRG as long-term oriented shareholder, Covestro will continue its journey focusing on scaling its circular economy ambitions, driving digital transformation through advanced technologies such as AI and quantum computing, and strengthening its activities in high-growth sectors like mobility, construction, and electronics.
XRG’s expertise in energy transition will complement Covestro’s sustainability goals, providing access to cleaner energy solutions and enhancing resilience in a rapidly changing global landscape.
Key elements of the agreed strategic partnership include, inter alia, that Covestro will act as the foundational platform for XRG’s Performance Materials and Specialty Chemicals business. In accordance with the terms of the Investment Agreement, Covestro will retain its autonomy, with its Board of Management, led by CEO Dr. Markus Steilemann, continuing to oversee operational management and strategic direction.
XRG will collaborate with Covestro’s management to identify further opportunities to enhance operational efficiency, strengthen resilience and capture long-term value as the company enters this next phase.
Also, in accordance with the terms of the Investment Agreement, upon closing, Covestro maintains its corporate structure, German corporate governance standards and existing general works agreements along with its registered headquarters in Leverkusen.
