Adnoc’s Bold Bet on the Future: A Game-Changing Acquisition
In a move that underscores its ambitions beyond oil, Abu Dhabi National Oil Co. (Adnoc) is poised to close a landmark $13 billion deal to acquire German chemical giant Covestro AG. This milestone transaction, which saw Adnoc secure 91.3% of Covestro’s stock by December 16, sets the stage for the UAE energy titan to anchor its international growth strategy. Adnoc’s executive director for downstream and trading, Khaled Salmeen, highlighted the significance of the acquisition, emphasizing that Covestro would remain a standalone business while driving Adnoc’s plans for global expansion.
Adnoc is no stranger to adaptation. As the UAE’s leading oil producer, the company is pivoting toward a diversified energy portfolio that includes natural gas, plastics, and chemicals — sectors expected to thrive amid the energy transition. While markets remain stable today, Adnoc is betting on future trends like China’s evolving energy demands and the global shift toward low-carbon solutions. Salmeen dismissed fears of “peak oil” or “peak energy,” reinforcing confidence in Adnoc’s ability to navigate a changing energy landscape. The creation of XRG PJSC, a newly announced $80 billion investment arm, signals the company’s commitment to this vision. XRG will steer Adnoc’s international ventures, including its majority stake in Covestro and its regional gas partnerships with BP.
The acquisition is more than just a business move; it’s a strategic leap for Adnoc into the heart of Europe’s innovation ecosystem. Covestro, a pioneer in high-performance materials for leading phone and car manufacturers, offers Adnoc a crucial foothold in advanced manufacturing and sustainable materials. This is not merely the largest Middle Eastern takeover of a European firm — it’s a declaration of intent by Adnoc to lead in the next era of energy and materials, blending tradition with transformation.
(Source: Energy Intelligence | The National | Arab News)
