Adnoc’s play for Covestro enters its final stretch: Adnoc secured all remaining regulatory clearances for its acquisition of German polymer materials manufacturer Covestro, putting the transaction on track to close in the coming days, according to a press release. Adnoc International Germany Holding, the XRG subsidiary acting as bidder, received final approval from Germany’s Federal Ministry for Economic Affairs and Energy following the European Commission’s green light last week. The approval, like the commitments, is valid for a decade. Covestro had guided for the transaction to close before 2 December.

IN CONTEXT- At EUR 14.7 bn, the transaction counts as the largest Gulf-led buyout of a European-listed company in nearly two decades. The signs-offs bring an end to months of scrutiny, after Brussels opened an in-depth probe into the bid under its Foreign Subsidies Regulation warning that state-backed support, including an unlimited state guarantee, a planned capital injection, and tax benefits, could distort market competition. The energy giant responded by dropping the unlimitedbacking through amendments to its articles of association and agreeing to license Covestro’s sustainability patents to European rivals for 10 years.

What’s next? Covestro plans to carry out a EUR 1.17 bn capital increase once the acquisition closes to fund strategic investments and further its sustainability program. Covestro will remain headquartered in Leverkusen, continue under its existing management, and keep all employee agreements (including job protections, collective bargaining, and co-determination arrangements) intact.

Market reax: Covestro’s shares edged up 0.2% to EUR 60.36 apiece on the Frankfurt Stock Exchange at Friday’s close.

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