Covestro AG and XRG P.J.S.C. have received the final regulatory approval from the German Federal Ministry for Economic Affairs and Energy under foreign investment rules for their strategic partnership. The closing is expected in the coming days, with all conditions fulfilled. The duo is working to redefine the chemical industry through innovation, circularity, and driving digital transformation.
Covestro
Covestro and XRG receives final regulatory approval for strategic partnership
“This is an exciting new chapter for Covestro,” said Dr Markus Steilemann, CEO of Covestro. “With XRG as a strong and long-term-oriented partner, we will drive innovation and digital transformation, scale circular solutions, and set new standards in the chemical industry. Together, we are well-positioned to take our ‘Sustainable Future’ strategy to the next level. Our partnership reflects not only shared goals and ambitions for a successful future and a new chemical era, but also mutual benefits and opportunities for both Covestro and XRG as well as for our customers, suppliers, employees and all other stakeholders.”
Dr Rainer Seele, President of Global Chemicals at XRG, added, “Securing these regulatory clearances allows us to move forward and focus on establishing a long-term, stable partnership with Covestro. This acquisition strengthens XRG’s international footprint in chemicals and supports our ambition to become a top-three global investor in the sector. We have deep respect for Covestro’s people and expertise, and we look forward to working closely with its management team to realise the company’s full potential.”
The pair are committing to addressing powerful megatrends and hopes to shape industries and societies globally. Combining XRG’s strength and global reach with Covestro’s expertise in advanced technologies and circular solutions, the duo hopes to unlock opportunities and deliver long-term value for all stakeholders.
With XRG as a long-term oriented shareholder, Covestro will continue to focus on scaling its circular economy plans, driving digital transformation through advanced technologies (e.g., AI and quantum computing), and strengthening its activities in high-growth sectors like mobility, construction, and electronics. XRG’s energy transition knowledge will aid Covestro in achieving its sustainability goals.
Key elements of the strategic partnership include:
- Covestro will act as the foundational platform for XRG’s Performance Materials and Speciality Chemicals business.
- Covestro will retain its autonomy, with its Board of Management, led by CEO Dr Markus Steilemann, continuing to oversee operational management and strategic direction.
- XRG will collaborate with Covestro’s management to identify opportunities for operational efficiency, to strengthen resilience, and capture long-term value.
- Upon closing, Covestro will maintain its corporate structure, German corporate governance standards, and existing general works agreements along with its registered headquarters in Leverkusen.