meed-logo

line1 line2 line3
SIGN IN / REGISTER

Adnoc-Covestro deal decision due in May

2 April 2025

EU antitrust regulators are expected to decide by 12 May whether to clear or extend the review of Abu Dhabi National Oil Company's (Adnoc) €15.9bn ($17.1bn) takeover of German chemicals producer Covestro.

The 27-country EU competition enforcer can either clear the deal with or without conditions, or open a four-month investigation after its preliminary review, a Reuters report said, citing a filing on the European Commission's website.

It was reported in October last year that Adnoc International, the overseas business arm of Adnoc Group, had signed an investment agreement Covestro in which it made a takeover offer of €14.7bn.

Adnoc International said at the time that it will launch a voluntary public takeover of €62 ($69) a share, which implies an equity value for Covestro of about €11.7bn and represents a premium of about 54% to Covestro’s closing price on 19 June, the day before the first media coverage regarding a potential transaction.

Leverkusen-headquartered Covestro’s supervisory and management boards supported the takeover offer.

In addition, Adnoc International will subscribe to a 10% non-preemptive capital increase of €1.17bn in Covestro at the closing of the transaction.

The offer will be subject to a minimum acceptance level of 50% plus one share and customary closing conditions, including merger control, foreign investment control and EU foreign subsidies clearances, the companies said.

The agreement between Adnoc International and Covestro, which runs until the end of 2028, contains several obligations on the part of the Abu Dhabi energy producer, including maintaining Covestro’s existing business activities, corporate governance and organisational business structure.

Adnoc approached Covestro about a potential takeover in September 2023, but initial advances were rejected, leading the Abu Dhabi state enterprise to raise the value of its offer.

Adnoc’s initial approaches included a takeover price of €55 and then €57 a share, Bloomberg News reported at the time.

Covestro’s expertise lies in chemicals recycling, which is key for the future of the energy industry and a target area for Adnoc.

Russia's invasion of Ukraine in 2022 slashed deliveries of natural gas to Germany, resulting in a crisis that gripped the German chemicals industry, which accounts for about 5% of the country’s GDP.

Precedent

In September, the European Commission approved the takeover of the telecommunications assets of Czech investment group PPF by UAE telecoms group e&.

Sovereign wealth fund Emirates Investment Authority holds a 60% stake in e&. The commission's review concluded that the “subsidies received by e& did not lead to actual or potential negative effects on competition in the acquisition process”.

https://image.digitalinsightresearch.in/uploads/NewsArticle/13602719/main.jpg
Jennifer Aguinaldo

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • Riyadh Royal Commission awards metro Line 2 extension

    18 July 2025

     

    Register for MEED’s 14-day trial access 

    Saudi Arabia’s Royal Commission for Riyadh City (RCRC) has awarded an estimated $800m-$900m contract to build the next phase of the Riyadh Metro project, which is the Line 2 extension.

    The contract was awarded to the Arriyadh New Mobility Consortium.

    The Line 2 extension is 8.4 kilometres (km) long, of which 1.3km is elevated and 7.1km is underground. It includes five stations – two elevated and three underground.

    It will run from where Line 2 currently ends at King Saud University (KSU) and then travel onwards to new stations at KSU Medical City, KSU West, Diriyah East, Diriyah Central, where it interchanges with the planned Line 7, and then finally to Diriyah South.

    According to the consortium’s official website, the consortium members include Italy’s Webuild, India’s Larsen & Toubro, locally based Nesma & Partners, Japan’s Hitachi, Italy’s Ansaldo STS, the Canadian firm Bombardier, Spain’s Idom and WorleyParsons from Australia.

    In 2013, the Arriyadh New Mobility Consortium secured Riyadh Metro’s Line 3 project for $5.21bn.

    Line 3, also known as the Orange Line, stretches from east to west, from Jeddah Road to the Second Eastern Ring Road, covering a total distance of 41km. 

    Riyadh Metro

    Riyadh Metro’s first phase features six lines with 84 stations.

    The RCRC completed the phased rollout of the Riyadh Metro network when it started operating the Orange Line on 5 January.

    In December last year, the RCRC started operating the Red Line and Green Line.

    The Red Line, also known as Line 2, stretches 25.1km from the east of Riyadh to the west, via King Abdullah Road, connecting King Fahd Sports City and King Saud University. It has a total of 15 stations.

    The Green Line, also known as Line 5, extends 13.3km from King Abdullah Road to the National Museum. With 12 stations, it serves several ministries and government agencies, including the Defence Ministry, the Finance Ministry and the Commerce Ministry, as well as other areas.

    Earlier in December, the RCRC started operating the Blue Line (Line 1), Yellow Line (Line 4) and Purple Line (Line 6).

    The Blue Line connects Olaya Street to Batha; the Yellow Line runs along King Khalid International Airport Road; while the Purple Line connects Abdul Rahman Bin Awf Road with Al-Sheikh Hassan Bin Hussain Road.

    King Salman Bin Abdulaziz Al-Saud inaugurated the Riyadh Metro on 27 November last year.

    The network spans 176km. Four of the stations have been designed by signature architects.

    The metro is part of the Riyadh Public Transport Project, which encompasses metro and bus systems. The project aims to relieve traffic congestion.

    The $23bn project was scheduled to open in 2018, but construction activity slowed due to disputes over prolongation and the disruption caused by the Covid-19 pandemic.

    The RCRC awarded the main construction packages for the scheme on 28 July 2013.

    In November 2022, the RCRC struck a deal with three contracting consortiums working on the Riyadh Metro scheme regarding the completion of the project’s remaining works.

    The Fast consortium won lines 4, 5 and 6, reportedly valued at $7.82bn. The Bacs consortium was awarded lines 1 and 2 for $9.45bn, while Arriyadh New Mobility secured Line 3 for $5.21bn.

    US firm Bechtel leads the Bacs consortium. Italian firm Ansaldo STS is the leader of the Arriyadh New Mobility group, and Spanish firm FCC Construccion heads the Fast consortium.

    AtkinsRealis has delivered programme management and supervision services for the operations and maintenance of the Riyadh Metro scheme.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/14289337/main.jpg
    Yasir Iqbal
  • Firms submit bids for Maaden gold project water pipeline

    17 July 2025

    Saudi Arabian Mining Company (Maaden) has received proposals from local firms for a water pipeline network it plans to build as part of a larger project to develop a new gold mining and processing facility in the Al-Rjum region of the kingdom.

    The Al-Rjum gold mining and processing facility, located in Medina province, is expected to be commissioned by the end of 2027. It will become the largest gold mining operation in Saudi Arabia when operational.

    According to sources, the pipeline is to be developed using a build-own-operate-transfer (BOOT) model. The engineering, procurement and construction (EPC) works will have a duration of 38 months, followed by a 20-year operations and maintenance period.

    Lamar Holding and Alkhorayef are understood to be the only bidders for the proposed Taif to Al-Rjum water pipeline, which forms package B of the Maaden gold mining project.

    The two contractors submitted bids for the water pipeline project on 1 July, sources told MEED.

    The main scope of work involves building a 150-kilometre pipeline that will supply treated sewage effluent water to the Al-Rjum gold mining facility.

    ALSO READ: Saudi Arabia issues mining exploration licences

    The Al-Rjum gold mining and processing facility will have an output capacity of 250,000 ounces of gold a year. The project will increase Maaden’s total gold production to 700,000 ounces a year by 2028, helping the company support Saudi Arabia’s overall goal of doubling gold production by 2030 and achieving a four-fold increase in output by 2040.

    MEED recently reported that Maaden had received bids for a tender to develop accommodation facilities for over 4,500 of its workers at the upcoming Al-Rjum gold mining and processing facility.

    Bids for the Al-Rjum worker accommodation tender, which is also under the BOOT model, were submitted in late June. The operations and maintenance period for this contract is 15 years.

    ALSO READ: Saudi Arabia and Oman open up their minerals potential
    https://image.digitalinsightresearch.in/uploads/NewsArticle/14284263/main3503.jpg
    Indrajit Sen
  • Bahrain and US sign nuclear energy agreement

    17 July 2025

    Bahrain and the US have signed a cooperation agreement covering the field of peaceful nuclear energy.

    The agreement aims to enhance collaboration in nuclear energy, recognising its vital role in sustainable development and energy security. It aligns with Bahrain's ambitious goal of achieving carbon neutrality by 2060 and contributes to global efforts to combat climate change.

    As Bahrain explores alternative energy sources, senior officials have previously indicated to MEED that they are closely monitoring developments in small modular reactor (SMR) technology. This is particularly crucial for Bahrain, where limited land availability poses challenges for solar energy projects. Floating solar plants have been identified as a potential solution, but the exploration of nuclear energy and SMRs remains a priority for future energy diversification.

    The agreement was signed during an official visit to the US by Prince Salman Bin Hamad Al-Khalifa, the crown prince and prime minister of Bahrain.

    The agreement was formalised by Abdullatif Bin Rashid Al-Zayani, Bahrain’s minister of foreign affairs, and Marco Rubio, the US secretary of state.

    Al-Zayani added that the agreement builds upon the Comprehensive Security Integration and Prosperity Agreement (C-SIPA) signed in 2023. The agreement aims to strengthen cooperation in defence, security, emerging technologies, trade and investment.

    READ THE JULY 2025 MEED BUSINESS REVIEW – click here to view PDF

    UAE and Turkiye expand business links; Renewed hope lies on the horizon for trouble-beset Levant region; Gulf real estate momentum continues even as concerns emerge

    Distributed to senior decision-makers in the region and around the world, the July 2025 edition of MEED Business Review includes:

    > PROJECTS MARKET: GCC projects market collapses
    > GULF PROJECTS INDEX: Gulf projects index continues climb
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/14281751/main.jpeg
    Colin Foreman
  • Kuwaiti firm wins $53m Duqm coastal road contract

    17 July 2025

    Kuwaiti contractor Combined Group Contracting Company (CGCC) has won a RO20.6m ($53m) contract to construct coastal roads in Duqm.

    The scope of work covers the construction of roads with a total length of 14 kilometres, including a coastal road, a proposed service road, an extension to an existing service road, a resort street, four roundabouts, future extensions and proposed links.

    The contract duration is two years from the start date of construction.

    MEED reported in August 2023 that CGCC had emerged as the lowest bidder for the project.

    GlobalData estimates that the construction industry in Oman will grow by 3.6% in real terms in 2025, supported by rising foreign direct investment (FDI) in the country, particularly in the manufacturing sector, as well as investment in the energy and transport sectors.

    The infrastructure construction sector is estimated to grow by 5.7% in 2025, before recording an annual average growth of 5.2% between 2026 and 2029, supported by the government’s investment in upgrading road and airport infrastructure.

    CGCC’s contract win in Oman comes shortly after a key contract win in the UAE, worth AED685m ($186m).

    The scope of work under this contract encompasses the upgrade works on Emirates Road, from the Al-Badea intersection in Sharjah to the E55 intersection in Dubai.

    The UAE’s Ministry of Energy & Infrastructure is the project client.

    The contract duration is 25 months.

    READ THE JULY 2025 MEED BUSINESS REVIEW – click here to view PDF

    UAE and Turkiye expand business links; Renewed hope lies on the horizon for trouble-beset Levant region; Gulf real estate momentum continues even as concerns emerge

    Distributed to senior decision-makers in the region and around the world, the July 2025 edition of MEED Business Review includes:

    > PROJECTS MARKET: GCC projects market collapses
    > GULF PROJECTS INDEX: Gulf projects index continues climb
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/14281451/main.gif
    Yasir Iqbal
  • Algeria awards $855m contract for gas production project

    17 July 2025

    Register for MEED’s 14-day trial access 

    Algeria’s national oil and gas company Sonatrach has awarded an $855m contract to China’s Jereh Group for a project to develop facilities at the Rhourde Nouss gas field.

    Jereh Group said that its subsidiary Jereh Oil & Gas Engineering will build a natural gas booster station in the Rhourde Nouss gas field and upgrade and renovate related transmission pipelines.

    The Yantai-based company cited a letter of award from Sonatrach and said that the contract will boost the company's footprint in North Africa’s oil and gas engineering service sector.

    The Rhourde Nouss boosting project will centralise the boosting of natural gas produced by the gas field and the adjacent Gassi Touil gas field, to improve their production efficiency and natural gas processing capacity, the company said.

    Sonatrach, the largest gas producing company in Africa and the largest state-owned enterprise in Algeria, will pay $629.1m and $226m for the construction of the project, Jereh said.

    Jereh's growing footprint

    Jereh has been expanding overseas in recent years and has won contracts with major Middle Eastern oil and gas clients, including Saudi Aramco, Abu Dhabi National Oil Company (Adnoc) and Kuwait Petroleum Corporation.

    In June 2021, the company was awarded a contract for the design, procurement and construction of a gas debottlenecking project in Algeria.

    The project was located in the Bir Rebaa Nord and Rhourde Ouled Djemma fields, which are located in the eastern Algerian desert, about 300 kilometres southeast of Hessi Messaoud.

    The client on that project was Groupement Sonatrach Eni, a joint venture of Sonatrach and Italian energy company Eni.

    READ THE JULY 2025 MEED BUSINESS REVIEW – click here to view PDF

    UAE and Turkiye expand business links; Renewed hope lies on the horizon for trouble-beset Levant region; Gulf real estate momentum continues even as concerns emerge

    Distributed to senior decision-makers in the region and around the world, the July 2025 edition of MEED Business Review includes:

    > PROJECTS MARKET: GCC projects market collapses
    > GULF PROJECTS INDEX: Gulf projects index continues climb
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/14278458/main.jpg
    Wil Crisp