• Abu Dhabi National Oil Co. (Adnoc) has secured a deal to acquire German chemical producer Covestro AG for approximately €11.7 billion ($13 billion), marking the largest Middle Eastern acquisition of a European firm. This move will value Covestro at €62 per share, conditional on Adnoc gaining at least 50% plus one share in its tender offer. The acquisition is significant for Adnoc, as it expands its reach into Europe by gaining control over a strategic industrial company with roots dating back to the 19th century. This will also be Adnoc’s biggest acquisition to date.

• The deal follows Adnoc’s ongoing strategy of pursuing global acquisitions, driven by its vast oil revenues. CEO Sultan Al Jaber has led the company’s efforts in securing assets worldwide, including gas projects in the US and Mozambique. Chemicals play a crucial role in this growth strategy, especially with opportunities emerging in the production of plastics, as oil demand growth slows due to the global energy transition. Covestro’s shares rose 4% after the announcement, reflecting market optimism about the deal's potential. With the agreement, Adnoc will subscribe to a €1.2 billion capital increase for Covestro, though it has no immediate plans for a domination agreement. The acquisition is seen as highly strategic and likely to proceed smoothly, with both companies’ management backing the deal.