Abu Dhabi National Oil Co. (ADNOC) has agreed to buy German chemical company Covestro for $16 billion.

In addition to ADNOC making a public takeover for all outstanding shares of Covestro at an established price, it is committing itself to fully supporting Covestro’s “Sustainable Future” strategy.

Sultan Ahmed Al Jaber, ADNOC managing director and group CEO, said: “As a global leader and industrial pioneer in chemicals, Covestro brings unmatched expertise in hightech specialty chemicals and materials, using advanced technologies including AI. This strategic partnership is a natural fit and aligns seamlessly with ADNOC’s ongoing smart growth and future proofing strategy and our vision to become a top 5 global chemicals company.” The purchase of Covestro represents its largest ever acquisition.

Markus Steilemann, CEO of Covestro, said: “We are convinced that the agreement reached with ADNOC International is in the best interest of Covestro, our employees, our shareholders and all other stakeholders. With ADNOC International’s support, we will have an even stronger foundation for sustainable growth in highly attractive sectors and can make an even greater contribution to the green transformation.”