Covestro's Final Quarter: Squeeze-Out Vote, New Finance Chief, and Million-Euro Efficiency Bet

Covestro shareholders vote May 19 on ADNOC's €59.46 squeeze-out, delisting Covestro. ADNOC also invests in energy-saving steam compressor at Dormagen.

The German chemical sector has been battered by soaring energy costs, with production slumping 18% since February 2022 and more than 53,000 jobs vanishing in energy-intensive segments. Covestro, itself a casualty of this headwind, is now drawing its final breath as a publicly traded entity. On Tuesday, May 19, shareholders will vote on a squeeze-out that will force out remaining minority investors, while Abu Dhabi’s ADNOC, already the dominant owner, installs fresh leadership and ploughs millions into a novel energy-saving project.

ADNOC’s investment vehicle XRG now holds 95.1% of Covestro’s shares, clearing the way for the formal delisting process. The proposed cash settlement stands at €59.46 per share, a figure backed by a PwC fairness opinion. Investors appear resigned to that outcome: the stock closed at €59.60 on Friday, with 30-day volatility of just 1.78%. For all practical purposes, the market has already priced in the exit.

Yet beneath the placid surface, Covestro is pushing ahead with operational improvements. At its Dormagen site, the company has begun construction of a low double-digit million-euro steam compressor that works on the same principle as a heat pump. The unit will capture waste heat generated during the production of TDI, a key raw material for flexible foam, and recompress it to a temperature and pressure high enough for reuse. Once operational in mid-2027, the compressor is expected to cut the site's annual CO? emissions by 40,000 tonnes and reduce Covestro’s overall German energy consumption by 2% per year. Construction starts at the end of 2026.

The boardroom is also being reshaped for the post-listing era. The supervisory board has appointed Klaus Fröhlich as the new chief financial officer, effective October 1, 2026. Fröhlich, who joins directly from ADNOC where he served as investment chief, will replace Christian Baier and oversee both the integration of Covestro into the ADNOC fold and the execution of the group’s long-term strategy. His appointment underscores the parent company’s hands-on approach.

Beyond the immediate squeeze-out, Covestro’s sustainability roadmap remains intact. The company aims to cut energy consumption per tonne of output by 20% by 2030, compared with the 2020 baseline. The Dormagen project is a cornerstone of that plan. Once the squeeze-out is registered in the commercial register, minority shareholders will automatically receive the €59.46 compensation. Those who consider the price inadequate can challenge it through a court appraisal proceeding after the fact.

All attention now rests on the May 19 vote. With ADNOC holding an overwhelming majority, approval is all but certain. Covestro’s stock will soon disappear from the General Standard segment, and the company will begin its next chapter as a wholly owned subsidiary of the Gulf energy giant.