ABU DHABI/LEVERKUSEN (dpa-AFX) - Specialty chemicals company Covestro is coming under Arab ownership. After the EU Commission gave the green light last week, the German Federal Ministry of Economics also signaled its approval of the takeover by a subsidiary of the state-owned company Adnoc from the United Arab Emirates. Covestro and XRG announced in Leverkusen that they had received regulatory approval from the ministry. XRG is the investment arm of the Abu Dhabi National Oil Company (Adnoc).
Covestro was formerly the plastics division of Bayer and became an independent company in 2015. It manufactures chemicals that are used in rigid foams in refrigerators and freezers and in flexible foams in car seats and mattresses. The group has approximately 17,500 employees. Of these, a good 7,000 are employed in Germany, working at the headquarters in Leverkusen as well as in Dormagen, Krefeld (Uerdingen), and Brunsbüttel.
The German management team views the new Arab owner positively. "With XRG as a strong and long-term partner, we will be able to expand innovation and digital transformation, further advance the circular economy, and set new standards in the chemical industry," said Covestro CEO Markus Steilemann. XRG manager Rainer Seele said the goal is to be among the top three investors in the global chemical industry.
Weak economy weighs on Covestro
With the approval of the Federal Ministry of Economics, the last obstacle to the takeover initiated last year has been removed. The technical closing is expected in the coming days, which is a formality – then the takeover will be complete.
Like other chemical companies, Covestro is suffering from the weak economy, expensive energy, and the tense trade situation caused by US tariffs. According to company figures, sales slumped by 12 percent to around 3.2 billion euros in the third quarter of 2025. The bottom line was a loss of 47 million euros./wdw/DP/nas
