Covestro

Last updated
Covestro AG
Company type Aktiengesellschaft
Industry
Predecessor Bayer MaterialScience
Founded1 September 2015;10 years ago (2015-09-01)
Headquarters
Leverkusen, North Rhine-Westphalia
,
Germany
Key people
Markus Steilemann (CEO)
RevenueIncrease2.svg €18.0 billion (2022) [1]
Decrease2.svg€0.3 billion (2022) [1]
Decrease2.svg€−0.3 billion (2022) [1]
Total assets Decrease2.svg€14.6 billion (2022) [1]
Total equity Decrease2.svg€7.1 billion (2022) [1]
OwnerXRG
Number of employees
17,985 (2022) [1]
Parent ADNOC
Website www.covestro.com

Covestro AG is a German company producing polyurethane and polycarbonate raw materials. Products include isocyanates and polyols for cellular foams, thermoplastic polyurethane and polycarbonate pellets, as well as polyurethane based additives used in the formulation of coatings and adhesives. [2] It is a Bayer spin-off formed in the fall of 2015 and was formerly called Bayer MaterialScience. [3] [4]

Contents

The main industries served are automotive manufacturing and supply, electrical engineering and electronics, construction and home products, and sports and leisure. Their products include coatings and adhesives, polyurethanes that are used in thermal insulation, electrical housings, and as a component of footwear and mattresses, and polycarbonates such as Covestro's Makrolon, which are highly impact-resistant plastics. [3] Covestro polyurethane was used in the 2014 official FIFA World Cup football. [5] Before 2019, Covestro enjoyed rapid earnings growth following supply shortages of chemicals used in foams. [6]

Covestro shares were first offered on the Frankfurt Stock Exchange in October 2015. [7] Bayer sold its entire remaining stake in May 2018, Bayer's pension fund had a 6.8% stake managed separately. [8]

In October 2024, Abu Dhabi National Oil Company (ADNOC) announced a deal to buy Covestro for €14.7 billion. [9] In December 2025, it was announced that the transaction had been completed through XRG, a subsidiary of the Abu Dhabi state-owned company formerly known as ADNOC International. [10] [11]

Acquisition by ADNOC

In September 2023, Covestro reported that it was in talks with ADNOC for the latter to acquire it. [12]

Since the German firm announced it would support its takeover bid of €62 per share in October 2024, this meant that the Abu Dhabi-based company would buy Covestro for up to €16 billion. [13] [14] Furthermore, it was stated that the acquisition was expected to be completed in the second half of 2025. [15]

In November 2025, the EU competition regulator conditionally approved the acquisition after ADNOC offered to ensure the firm aligned with UAE insolvency law and to share Covestro's sustainability patents with some competitors. [16] A month later, the purchase was completed by ADNOC through XRG.

See also

References

  1. 1 2 3 4 5 6 "Speeding Up to Circularity. Annual Report 2022. Covestro" (PDF). Retrieved 3 August 2023.
  2. ↑ "The three segments of our core business | Covestro". www.covestro.com. Retrieved 2021-03-19.
  3. 1 2 Christopher Alessi for the Wall Street Journal. Sept. 1, 2015 Bayer Separates Material Science Business Covestro.
  4. ↑ Joyce Gannon for the Pittsburgh Post-Gazette September 1, 2015 Bayer MaterialScience assumes its new identity as Covestro.
  5. ↑ Justine Coyne for the Pittsburgh Business Times. Jun 12, 2014 Bayer gets ball rolling at World Cup
  6. ↑ Zuzanna Szymanska (July 24, 2019), Covestro confirms 2019 outlook despite cooling economy Reuters .
  7. ↑ Sheenagh Matthews and Alex Webb for Bloomberg News. October 6, 2015 Covestro Jumps on First Day of Trading in Frankfurt After IPO.
  8. ↑ "Bayer Boosts Finances With $2.6 Billion Covestro Stake Sale".
  9. ↑ "Abu Dhabi's ADNOC to buy German chemicals firm Covestro for $16 bln". Reuters. 2 October 2024. Retrieved 2 October 2024.
  10. ↑ "XRG completes acquisition of Covestro". Polimerica - Plastics & Rubber News. Retrieved 2025-12-12.
  11. ↑ "XRG Completes Takeover of Covestro in Strategic Partnership". Oil and Gas Middle East. Retrieved 2025-12-12.
  12. ↑ "Covestro: Saudi-Arabiens Ölkonzern Adnoc könnte Chemiekonzern übernehmen". FAZ.NET (in German). 2023-09-08. Retrieved 2025-05-09.
  13. ↑ "Ölkonzern Adnoc aus den Emiraten schluckt Covestro – Marktkenner sind optimistisch". www.wiwo.de. Retrieved 2025-05-09.
  14. ↑ "ADNOC to buy Covestro for $16.3 billion". Chemical & Engineering News. Retrieved 2025-05-09.
  15. ↑ Küfner, Thorsten. "Covestro: Adnoc ist am Ziel". www.deraktionaer.de (in German). Retrieved 2025-05-09.
  16. ↑ Hancock, Edith (2025-11-14). "EU Conditionally Clears $13.7 Billion Adnoc-Covestro Deal". The Wall Street Journal. Retrieved 2025-11-14.
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