Abu Dhabi's ADNOC and Masdar make major global acquisitions

Abu Dhabi National Oil Company (ADNOC) and Abu Dhabi Future Energy Company (Masdar) have recently completed significant acquisitions, reinforcing the UAE’s growing influence in both the energy and renewable sectors.

ADNOC has finalized its €11.7 billion ($13 billion) acquisition of Covestro AG, a leading German chemical manufacturer, while Masdar has acquired a 50% stake in U.S.-based renewable energy company Terra-Gen.

ADNOC finalizes €11.7 billion acquisition of Covestro AG

ADNOC has completed its largest-ever acquisition of a European company, purchasing Germany’s Covestro AG for approximately €11.7 billion. This transaction marks the biggest acquisition by a Middle Eastern company in Europe.

The deal values Covestro at €62 per share, contingent on ADNOC securing at least 50% plus one share. Additionally, ADNOC will contribute €1 billion in fresh liquidity to bolster Covestro’s financial position through a capital increase.

This acquisition is part of ADNOC's broader global expansion strategy, led by CEO Sultan Al Jaber, who has been actively pursuing deals worldwide.

Recent ventures include stakes in gas projects in the U.S. and Mozambique. ADNOC views the chemical sector as a key growth driver, with expectations of strong demand for products used in plastic manufacturing, even as global oil demand may slow due to the ongoing energy transition.

The deal concludes after a year of intense negotiations, during which ADNOC raised its offer several times from an initial bid of €55 per share, according to Bloomberg reports.

Masdar acquires 50% stake in Terra-Gen

Meanwhile, Masdar has acquired a 50% stake in U.S.-based renewable energy firm Terra-Gen from Energy Capital Partners. This acquisition follows another significant purchase by Masdar earlier in the week, where it acquired Spain’s "Cirtia Yield" from Brookfield Renewable for approximately $1.4 billion.

Terra-Gen, one of the largest independent producers of renewable energy in the U.S., operates a portfolio of 3.8 gigawatts of wind, solar, and battery energy storage projects, along with 5.1 gigawatt-hours of electricity storage facilities.

These assets are primarily located in renewable energy hubs like California and Texas. With this acquisition, Masdar co-owns Terra-Gen, while Igneo Infrastructure Partners retains its existing 50% stake.

Masdar is committed to expanding its global footprint, aiming to more than double its renewable energy generation capacity to over 100 gigawatts by the end of the decade.

The company plays a crucial role in leading the UAE’s clean energy transition, supporting the country’s ambitious goal of achieving net-zero carbon emissions by 2050, making it the first oil-producing nation in the Middle East to announce such a target.

Masdar is jointly owned by Abu Dhabi’s sovereign wealth fund Mubadala, the Abu Dhabi National Energy Company (TAQA), the country’s largest utility, and ADNOC, fully owned by the Abu Dhabi government.