Adnoc’s global energy investment arm XRG announced on Thursday that it would become the majority shareholder of Covestro, after the German chemicals company’s shareholders accepted a takeover offer.
Shares tendered and already bought by XRG amount to 91.32 per cent of Covestro's total outstanding shares, XRG said in a statement on Thursday. The deal, which is expected to close in the second half of 2025, is subject to further regulatory approvals, the company added.
In October, XRG, which was called Adnoc International at the time, agreed to buy Covestro for an enterprise value of €14.7 billion ($15.3 billion). “Today’s significant milestone marks the first major transformational investment for XRG in chemicals, accelerating our ambition to become a top five global chemicals player,” said Dr Sultan Al Jaber, executive chairman of XRG and Adnoc’s chief executive.
Adnoc's acquisition of Covestro is the UAE's largest cross-border deal and the biggest foreign direct investment into Germany in the past five years. Leverkusen-based Covestro is one of the world’s largest manufacturers of high-quality polymer materials and their components. It reported earnings before interest, taxes, depreciation and amortisation of €287 million in the third quarter of this year, which was up nearly 4 per cent from the same period a year in 2023.
However, the company reduced its full-year 2024 earnings forecast for the second time this year, citing challenging economic conditions. Covestro now expects earnings before interest, taxes, depreciation and amortisation to be in the range of €1 billion and €1.25 billion, down from its previous forecast of €1.0 billion to €1.4 billion.
“Covestro lies at the heart of XRG’s growth plans and complements its decarbonisation and advanced technologies leadership goals,” XRG said. European chemical companies such as Covestro saw their profit margins squeezed by elevated natural gas prices triggered by the Russia-Ukraine war.
This year, Adnoc increased its shareholdings in Borealis and Borouge – joint ventures with OMV – by acquiring a 24.9 per cent stake in the Austrian energy company. In July, a consortium comprising Borouge, Adnoc and Borealis signed an agreement with Chinese companies to set up a polyolefins complex in Fujian Province, which will have a capacity of 1.6 million tonnes a year.
By 2030, the petrochemical industry’s global market value is expected to exceed $1 trillion, from $584.5 billion in 2022, according to Statista. China, the world’s second-largest economy, plans to add capacity of 134 million tonnes per year, dominating the market in the medium term, the data portal said.
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Dust and sand storms compared
Sand storm
- Particle size: Larger, heavier sand grains
- Visibility: Often dramatic with thick "walls" of sand
- Duration: Short-lived, typically localised
- Travel distance: Limited
- Source: Open desert areas with strong winds
Dust storm
- Particle size: Much finer, lightweight particles
- Visibility: Hazy skies but less intense
- Duration: Can linger for days
- Travel distance: Long-range, up to thousands of kilometres
- Source: Can be carried from distant regions
UAE’s revised Cricket World Cup League Two schedule
August, 2021: Host - United States; Teams - UAE, United States and Scotland
Between September and November, 2021 (dates TBC): Host - Namibia; Teams - Namibia, Oman, UAE
December, 2021: Host - UAE; Teams - UAE, Namibia, Oman
February, 2022: Hosts - Nepal; Teams - UAE, Nepal, PNG
June, 2022: Hosts - Scotland; Teams - UAE, United States, Scotland
September, 2022: Hosts - PNG; Teams - UAE, PNG, Nepal
February, 2023: Hosts - UAE; Teams - UAE, PNG, Nepal
Name: Peter Dicce
Title: Assistant dean of students and director of athletics
Favourite sport: soccer
Favourite team: Bayern Munich
Favourite player: Franz Beckenbauer
Favourite activity in Abu Dhabi: scuba diving in the Northern Emirates
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4pm: Al Bastakiya Listed US$250,000 (Dirt) 1,900m
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What are NFTs?
Are non-fungible tokens a currency, asset, or a licensing instrument? Arnab Das, global market strategist EMEA at Invesco, says they are mix of all of three.
You can buy, hold and use NFTs just like US dollars and Bitcoins. “They can appreciate in value and even produce cash flows.”
However, while money is fungible, NFTs are not. “One Bitcoin, dollar, euro or dirham is largely indistinguishable from the next. Nothing ties a dollar bill to a particular owner, for example. Nor does it tie you to to any goods, services or assets you bought with that currency. In contrast, NFTs confer specific ownership,” Mr Das says.
This makes NFTs closer to a piece of intellectual property such as a work of art or licence, as you can claim royalties or profit by exchanging it at a higher value later, Mr Das says. “They could provide a sustainable income stream.”
This income will depend on future demand and use, which makes NFTs difficult to value. “However, there is a credible use case for many forms of intellectual property, notably art, songs, videos,” Mr Das says.
Who's who in Yemen conflict
Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government
Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council
Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south
Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory