ADNOC cleared to acquire Covestro for $16.4B
India’s anti-trust body the Competition Commission of India yesterday approved the biggest overseas acquisition by an Indian oil firm, ADNOC, for $16.4bn of German chemical manufacturer Covestro. This large deal is also clear indication of the ADNOC’s management’s decision to diversify its portfolio and improve its standing in the petrochemical and advanced materials value chain.
Another German original equipment manufacturer (OEM), Covestro specializing in high-performance polymers that are common in automobile, construction, and electronics industries among others.
Its decades of experience in sustainable and innovative materials also support ADNOC’s goal of moving to a low-carbon environment. As industries have shifted their focus to sustainable solutions, ADNOC wants to expand its portfolio participation in further renewable energy as well as advanced material through integrating Covestro.
The above CCI decision underscores the long-term significance of this acquisition for ADNOC, more so in fast growing markets like India where demand for novel material is rapidly rising.The transaction is the largest bet on new material ADNOC has made so far, proving that the company is ready to shift from the oil and gas business.
Whereby global industries are focusing on sustainability and innovation this acquisition means that ADNOC is able to offer state of the art solutions for international markets while consolidating its leadership in energy transition.
