UAE's ADNOC Acquires German Chemical Producer Covestro for $18 Billion
The United Arab Emirates' state-owned oil company, ADNOC, has concluded a deal to acquire German chemical producer Covestro for $18 billion, including debt, causing Covestro's shares to surge 4% at the start of trading.
This move is part of a broader effort by Gulf countries to diversify their economies and reduce their heavy reliance on oil, in the face of growing challenges posed by the global energy transition.
The acquisition represents a crucial pillar of ADNOC's plans to expand its activities in petrochemistry, gas, and renewable energy.
Founded in 2015, Covestro specializes in material science and supplies plastics and chemicals to the automotive, construction, and engineering sectors.
