The German Minister for Economic Affairs, Katherina Reiche, announced during a visit to Abu Dhabi that the federal government has cleared the planned acquisition of Covestro by Adnoc. According to Reiche, all internal governmental decisions have been finalised. The transaction now awaits the final signatures from the two companies. The European Commission had already approved the deal last week.
Reiche described the process as being in the final “closing” phase. Her trip included talks with Sultan Al Jaber, the UAE Minister of Industry and CEO of Adnoc.
Covestro originated from Bayer’s former plastics division and became an independent company in 2015. The company manufactures chemical precursors used in rigid foams for refrigerators and freezers, as well as flexible foams for automotive seats and mattresses. Covestro employs around 17,500 people worldwide, including more than 7,000 at its German sites in Leverkusen, Dormagen, Krefeld-Uerdingen and Brunsbüttel.
Relevance for the coatings industry
Covestro is a major supplier of polyurethane raw materials and polycarbonates, which are used in a wide range of coatings applications, such as industrial coatings, automotive coatings and functional resins. A change in ownership may influence supply chains, investment priorities and the strategic direction of polymer development relevant to the coatings sector.