{"id":99012,"date":"2024-12-20T00:00:00","date_gmt":"2024-12-20T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/uae\/adnocs-xrg-gets-covestro-shareholders-approval-to-acquire-majority-stake-in-chemicals-firm\/"},"modified":"2024-12-20T00:00:00","modified_gmt":"2024-12-20T00:00:00","slug":"adnocs-xrg-gets-covestro-shareholders-approval-to-acquire-majority-stake-in-chemicals-firm","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/uae\/2024\/12\/20\/adnocs-xrg-gets-covestro-shareholders-approval-to-acquire-majority-stake-in-chemicals-firm\/","title":{"rendered":"Adnoc's XRG gets Covestro shareholders\u2019 approval to acquire majority stake in chemicals firm"},"content":{"rendered":"<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"> <strong>That's a wrap on Adnoc\u2019s take over of Covestro:<\/strong> Adnoc\u2019s new low-carbon energy investment arm XRG secured a majority stake in German chemicals company Covestro following the completion of its voluntary public takeover offer, according to a <a target=\"_blank\" href=\"https:\/\/xrg.ae\/en\/news\/XRG%20Significantly%20Exceeds%20Shareholder%20Acceptance%20Threshold%20for%20Covestro%20AG%20Offer\" style=\"\" rel=\"noopener\">press release.<\/a> The offer \u201csignificantly exceeded\u201d the minimum shareholder acceptance threshold required for it to go through. The acquisition is the largest from a Middle Eastern buyer in Europe in 16 years. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>What we know:<\/strong> XRG acquired a 91.3% stake in Covestro, with the transaction still subject to regulatory approvals, including merger control and foreign investment regulations, with an expected closing date in the second half of 2025. XRG will keep Covestro as a standalone business, Khaled Salmeen, Adnoc\u2019s executive director for downstream and trading, told <a target=\"_blank\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2024-12-19\/adnoc-sees-chemical-firm-covestro-as-standalone-growth-business?embedded-checkout=true\" style=\"\" rel=\"noopener\">Bloomberg<\/a> in an interview. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>PLUS- <\/strong><strong>XRG has committed to \u201cfully support Covestro in executing its \u201cSustainable Future\u201d strategy<\/strong> and further strategic development,\u201d following the acquisition, the statement said. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Refresher: <\/strong>After over a year of negotiations, Covestro\u2019s management <a target=\"_blank\" href=\"https:\/\/enterprise.news\/uae\/en\/news\/story\/6886d3d2-94a6-4705-bee9-1d9c3cf6e035\/this-morning:-adnoc%E2%80%99s-covestro-takeover-gets-management-nod-%2B-cbuae-cuts-rates-in-line-with-fed\" style=\"\" rel=\"noopener\">expressed support<\/a> for Adnoc's EUR 14.7 bn (c. USD 16.3 bn) takeover offer earlier in November. The acquisition had already <a target=\"_blank\" href=\"https:\/\/enterprise.news\/uae\/en\/news\/story\/585d8d94-ac28-4261-90ad-670199174838\/%253cmark%253ecovestro%253c%2Fmark%253e%25e2%2580%2599s-shareholders-greenlight-adnoc%25e2%2580%2599s-takeover-%2B-fuel-prices-at-their-lowest-this-year-in-december\" style=\"\" rel=\"noopener\">surpassed<\/a> the minimum shareholder acceptance threshold when the initial acceptance period ended in November, reaching around 70%. The additional acceptance period ended 16 December. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Regulatory clearances from countries where Covestro operates are already pouring in:<\/strong> The acquisition received approval <a target=\"_blank\" href=\"https:\/\/enterprise.news\/uae\/en\/news\/story\/60c104fb-5036-4ed3-b4b0-3c40bc0e4b0c\/this-morning:-amman-stock-exchange-joins-tabadul-%2B-uae-mercosur-trade-agreement-in-2025%3F\" style=\"\" rel=\"noopener\">last week<\/a> from the Competition Commission of India, where Covestro operates through its subsidiary Covestro India.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>A<\/strong><strong>dnoc is making big moves in petrochemicals and gas:<\/strong> The state oil giant completed several gas and chemicals acquisitions this year. The state-run oil giant finalized its <a target=\"_blank\" href=\"https:\/\/enterprise.news\/uae\/en\/news\/story\/1518b3be-ab9f-4fa0-8564-6afaf3eb94a0\/adnoc-completes-acquisition-of-oci-global%25e2%2580%2599s-stake-in-fertiglobe,-with-el-hoshy-set-to-stay-on-as-ceo\" style=\"\" rel=\"noopener\">USD 3.62 bn<\/a> acquisition of OCI Global's 50%+1 stake in the chemical producer Fertiglobe in October.The company is also looking to <a target=\"_blank\" href=\"https:\/\/enterprise.news\/uae\/en\/news\/story\/4712abb5-5e8f-4d08-82b0-c44edac0dea7\/adnoc,%253cmark%253e-borouge%253c%2Fmark%253e-to-develop-polyolefins-complex-in-china\" style=\"\" rel=\"noopener\">merge<\/a> its plastics unit Borouge with Austria-based integrated oil and gas company OMV\u2019s Borealis, but the transaction is facing delays.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>XRG is starting off strong:<\/strong> Adnoc launched its USD 80 bn lower-carbon energy and chemicals investment platform only <a target=\"_blank\" href=\"https:\/\/enterprise.news\/uae\/en\/news\/story\/9f485310-a3c9-4c1e-a02e-cba776c56e64\/adnoc-sets-up-low-carbon-energy-and-chemicals-investment-unit\" style=\"\" rel=\"noopener\">last month<\/a>, with a target of focusing on international investments in lower-carbon energy and chemicals, and doubling its asset value over the next decade. Earlier this week, the Adnoc subsidiary partnered up with BP to launch a joint venture called <a target=\"_blank\" href=\"https:\/\/enterprise.news\/uae\/en\/news\/story\/940c83d7-18df-4abd-9d4c-d3c67e3e77ba\/adnoc%25e2%2580%2599s%253cmark%253e-xrg%253c%2Fmark%253e-makes-its-first-investment-%2B-adnoc-secures-another-supply-agreement-for-al-ruwais\" style=\"\" rel=\"noopener\">Arcius Energy<\/a>, which will focus on investments in lower-carbon transition fuel, with plans to invest initially in gas assets in Egypt. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>ICYMI-<\/strong> Adnoc appointed a board for XRG <a target=\"_blank\" href=\"https:\/\/enterprise.news\/uae\/en\/news\/story\/a1c8975b-586f-4ed3-9aa6-6db9e32ea010\/adnoc%25e2%2580%2599s%253cmark%253e-xrg%253c%2Fmark%253e-gets-a-new-board\" style=\"\" rel=\"noopener\">last week<\/a>, with CEO Sultan Al Jaber serving as executive chairman. The board includes former BP CEO Bernard Looney, Blackstone's Jon Gray, ADQ CEO Mohamed Hassan Alsuwaidi, UAE President\u2019s Office for Strategic Affairs Chairman Ahmed Mubarak Al Mazrouei, Abu Dhabi Department of Finance Chairman Jasem Al Zaabi, and OCI Global Executive Chair Nassef Sawiris.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>The story also got ink <\/strong>in <a target=\"_blank\" href=\"https:\/\/www.reuters.com\/markets\/deals\/covestro-shareholders-accept-adnocs-xrg-takeover-offer-2024-12-19\/\" style=\"\" rel=\"noopener\">Reuters<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>XRG acquired approximately 91.3% of Covestro's total outstanding shares<\/p>\n","protected":false},"author":1,"featured_media":99013,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[2392],"tags":[57,872,551,7,1235,60,636,2012],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-99012","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ma-watch-2","tag-adnoc","tag-bp","tag-covestro","tag-enterpriseam-uae","tag-julphar","tag-ma-watch","tag-petrochemicals","tag-xrg","wpautop","entry"],"acf":{"mongo_id":"df29a56b-f968-40a5-88c1-089fb205fa26","order":"3","is_powered_by":false,"story_type":"1","photo_url":"https:\/\/ent.news\/2024\/5\/2072.jpg","photo_position":"above","homepage_title":"","full_issue_title":"Adnoc's XRG gets Covestro shareholders\u2019 approval to acquire majority stake in chemicals firm","related_issue":[99007],"teaser":"XRG acquired approximately 91.3% of Covestro's total outstanding shares","voice_url":"https:\/\/s3.us-east-1.amazonaws.com\/ent.news\/audio\/2024\/12\/.daa9e2e5-e0d4-42ee-8992-c46ccff4bcfc.mp3"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - 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