The Competition Commission of India (CCI) has granted approval for Abu Dhabi National Oil Company (ADNOC) to acquire Germany-based Covestro AG in a $16.4 billion deal. ADNOC, a state-owned energy and petrochemical conglomerate from Abu Dhabi, plans to acquire up to 100% of Covestro’s share capital through an all-cash voluntary public takeover offer. Following the acquisition, ADNOC Germany will subscribe to 1.89 crore new Covestro shares, representing 10% of the current share capital, via a cash-funded capital increase.
Covestro, known for producing high-performance polymer materials, operates in India through Covestro (India) Pvt Ltd. In October 2023, Covestro entered into an investment agreement with ADNOC entities, outlining terms for a public takeover offer and a subsequent 10% capital increase through simplified exclusion of subscription rights. This transaction required CCI clearance due to its scale, as the regulator ensures fair competition and monitors potential anti-competitive practices in the market.
Covestro, a leading global supplier of high-performance polymer materials, specializes in creating innovative solutions for industries such as automotive, construction, electronics, and healthcare. Headquartered in Germany, the company is renowned for its commitment to sustainability and circular economy principles, focusing on reducing carbon emissions and enhancing the recyclability of materials.
Covestro’s extensive portfolio includes polycarbonates, polyurethanes, and coatings, which are designed to meet evolving industrial and consumer needs. With investments in cutting-edge research and collaborations, Covestro continues to drive advancements in lightweight materials, renewable energy applications, and energy-efficient technologies.
The Abu Dhabi National Oil Company (ADNOC) is one of the world’s leading energy producers and a key contributor to the United Arab Emirates’ economy. With a portfolio spanning upstream, midstream, and downstream operations, ADNOC is involved in exploration, production, refining, and marketing of oil and gas, alongside its growing focus on clean energy initiatives.
Committed to sustainability, ADNOC is investing in renewable energy projects, hydrogen production, and carbon capture technologies to align with global energy transition goals. The company’s strategic vision combines innovation with traditional energy expertise to deliver long-term value while addressing climate challenges.
