By: Oil & gas Middle east

Adnoc’s global energy investment arm, XRG, said it expects “timely clearance” from the European Commission for its $17 billion takeover of German chemicals giant Covestro, following the submission of a new set of proposals to address regulatory concerns.

In comments to The National, XRG said, “Following thorough engagement with the European Commission, we have submitted a robust and proportionate package of proposed commitments. They represent our disciplined approach as a long-term investor and underscore the strength of this transaction, and we are confident this will lead to timely clearance.”

The European Commission launched an in-depth investigation into the deal in July, citing concerns that Adnoc’s backing could amount to “foreign subsidies distorting the EU internal market”. Bloomberg reported earlier this week that the Commission has yet to set a new deadline for its decision after requesting additional details from XRG.

The Abu Dhabi group’s bid for Covestro, announced in October 2024, would mark one of the largest Middle East investments in Europe’s industrial sector. The deal is expected to close in the second half of 2025, pending regulatory approval.

Covestro is one of the world’s leading producers of high-performance polymer materials used across automotive, construction and electronics industries.

XRG, launched by Adnoc last year as a lower-carbon energy and chemicals investment platform, has an enterprise value of more than $80 billion. XRG has been rapidly expanding its global portfolio. Last month, it completed its first US gas investment — an 11.7 per cent stake in phase one of the Rio Grande LNG project in Texas. XRG’s board also met in New York to review its five-year strategy and plans for further expansion in the US.