ABU DHABI (dpa-AFX) - German Minister for Economic Affairs Katherina Reiche has announced that the federal government has given the green light for the takeover of specialty chemicals company Covestro by state-owned Adnoc from the United Arab Emirates. The CDU politician stated in Abu Dhabi that all necessary decisions had been made within the federal government, and they are now awaiting the two partners, who are expected to provide their final signatures in the coming days. Reiche held talks with Sultan Al Jaber, the UAE's Minister of Industry and Adnoc CEO.
Reiche said the acquisition was in its final "closing" stage, describing it as a "huge step" for the company. She emphasized that there had been intensive negotiations with the European Commission. Brussels had given its approval last week. The German government had also reviewed the deal.
Covestro was formerly the plastics division of Bayer and became an independent company in 2015. It manufactures chemicals used in rigid foams for refrigerators and freezers, as well as flexible foams for car seats and mattresses.
The group employs around 17,500 people, with more than 7,000 based in Germany. In addition to its headquarters in Leverkusen, employees also work in Dormagen, Krefeld (Uerdingen), and Brunsbüttel. The German management views the new Arab owner positively. Like other chemical companies, Covestro is struggling with weak economic conditions, expensive energy, and higher US tariffs.
