Adnoc finally lands its Covestro play: Adnoc’s global investment arm XRG closed its long-awaited takeover of German polymer-maker Covestro, with the latter also wrapping up the EUR 1.17 bn capital hike tied to the transaction, according to a press release from late last week.

Adnoc now has a 95.1% stake in the company, after conceding ground to satisfy Brussels’ competition concerns and securing regulatory clearances for the acquisition late last month. The energy giant has been trying to acquire the company for over two years.

Market reax: Covestro’s shares shed 0.17% to EUR 59.3 apiece on the Frankfurt Stock Exchange last Wednesday, its first close after the completion of the acquisition.

Our take

The acquisition is the largest Gulf-led buyout of a European-listed company in nearly two decades at EUR 14.7 bn, and proves Adnoc — through its international investment arm XRG — continues to hold plenty of negotiating prowess securing major acquisitions abroad, despite rising protectionism across Europe and other countries halting deals like what would have been its USD 18.7 bn acquisition for Santos.

XRG seems to remain undeterred and in talks with governments from Argentina to Azerbaijan on possible LNG investments, as it looks to secure a top-five global position in gas and petrochemicals.

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