Covestro AG has recently announced the successful closing of its strategic partnership with XRG P.J.S.C. (formerly ADNOC International Limited, together with its subsidiaries in the following "XRG"). following receipt of final regulatory approval from the German Federal Ministry for Economic Affairs and Energy. The agreed capital increase of EUR 1.17 billion was carried out as planned, providing Covestro with additional resources to support the implementation of its "Sustainable Future" strategy.
The partnership represents one of the most significant strategic alliances in the global chemicals industry, combining XRG's extensive energy sector expertise and international reach with Covestro's world-leading polymer technologies and innovation capabilities. Under the agreement, XRG becomes a major strategic shareholder while Covestro maintains full operational autonomy, its German headquarters in Leverkusen, and existing corporate governance standards.
"With XRG as a strong, long-term partner, we will drive innovation and digital transformation, scale circular solutions, and set new standards in the chemical industry. Our partnership reflects not only shared goals and ambitions for a successful future and a new chemical era, but also mutual benefits and opportunities for both Covestro and XRG as well as for our customers, suppliers, employees and all other stakeholders." said Dr. Markus Steilemann, CEO of Covestro.
Dr. Rainer Seele, President of Global Chemicals at XRG, emphasized: "This partnership significantly strengthens XRG's international chemicals footprint and supports our ambition to become a top three global investor in the chemicals sector. We look forward to working with Covestro's management team to realize the company's full potential."
The capital increase will enable Covestro to timely execute its strategic investment plans and its 'Sustainable Future' strategy. Covestro will continue the journey focusing on scaling circular economy ambitions, driving digital transformation through advanced technologies such as AI and quantum computing, and strengthening its activities in high-growth sectors like mobility, construction, and electronics. Both companies will leverage their complementary strengths to drive innovation in sustainable materials and capture emerging opportunities in the energy transition, while maintaining Covestro's commitment to its German operations and established global relationships.