Shareholders of the German chemicals company Covestro have approved XRG, the international investment arm of Abu Dhabi National Oil Company (ADNOC), to become its majority owner.
XRG reported that it has acquired 91.32% of Covestro’s outstanding shares. Sultan Al Jaber, ADNOC Group CEO and XRG Executive Chairman, called it “a transformative investment” that supports XRG’s ambition to become a top-five global chemicals player. Khaled Salmeen, ADNOC’s Executive Director, stated the deal would establish a standalone platform to grow its polycarbonate and polyurethane business.
ADNOC recently launched XRG to focus on international investments in low-carbon energy, with a valuation exceeding $80 billion. XRG’s board includes Jon Gray of Blackstone and former BP CEO Bernard Looney. The company has also entered talks with Austria’s OMV on a potential merger between Borealis AG and Borouge and finalised a deal with BP for a natural gas project in Egypt, where XRG holds a 49% stake.
