Mergers & Acquisitions
September 4, 2025
Adnoc Covestro EU Probe Delayed
Adnoc says EU probe delays could jeopardize Covestro deal – reports
Sep. 04, 2025 10:00 AM ETCovestro AG (CVVTF) Stock, COVTY StockBy: Joshua Fineman, SA News Editor
Abu Dhabi’s Adnoc said the European Union competition regulator’s decision to temporarily halt its probe into the Covestro (OTCPK:CVVTF) deal could jeopardize the transaction.
“While we remain committed to pursuing a constructive path forward, the continuation of such an approach raises serious questions about the viability of this investment,” a spokesperson for XRG, the international investment arm of Adnoc, told Reuters and MLex in an email.
The European Commission was set to decide on the probe by Dec. 2, though it will now set a new deadline.
“We are deeply disappointed by today’s decision,” the spokesperson for XRG told the news outlets. “The Commission’s demands have strayed far beyond what is reasonable or relevant to this transaction, crossing into areas that are both disproportionate and invasive.”
Covestro shares fell as much as 11% on Thursday in Frankfurt.
The European Commission in late July announced it was starting an in-depth probe into Abu Dhabi National Oil Co.’s €11.7B (~$13.75B) acquisition of Covestro (OTCPK:CVVTF) (OTCPK:COVTY) under the European Union’s tough new foreign subsidy rules. The EC said it will investigate concerns that Adnoc’s state funding by the United Arab Emirates could allow it to behave in a way that interferes with fair competition across the bloc.
September 2, 2025
Dow Sells Additional 9% of Equity in Diamond Infrastructure
Macquarie Ups Stake in Diamond Infrastructure to 49%
- Diamond Infrastructure Solutions leverages Dow’s operational excellence and Macquarie Asset Management’s infrastructure and energy expertise to generate growth opportunities by opening access to Dow’s U.S. Gulf Coast sites to third party customers
- Dow to receive total cash proceeds of approximately $US3.0 billion, inclusive of $US2.4 billion related to initial 40% equity stake
Macquarie Asset Management today announced that Macquarie Infrastructure Partners VI (“MIP VI”), an unlisted infrastructure fund managed by Macquarie Asset Management has exercised the previously announced option to acquire an additional 9% equity stake in select U.S. Gulf Coast infrastructure assets of Dow Inc. (“Dow”) (NYSE: DOW). This brings MIP VI’s total equity stake in Diamond Infrastructure Solutions (“Diamond”) to 49%.
Diamond is a specialist infrastructure provider to Dow and other industrial customers at its five locations in Texas and Louisiana, offering comprehensive services to its tenants with a focus on world class efficiency, reliability and safety. As a dedicated infrastructure company, Diamond has formed a new business model with greater strategic focus on operational efficiencies and new customer acquisition.
“In the four months since the joint venture between MAM and Dow was established, Diamond has established itself as an independent company focused on delivering world class infrastructure services and has already attracted a number of new unaffiliated customers,” said Ben Way, Global Head of Macquarie Asset Management. “We are thrilled to have the opportunity to increase our investment in Diamond as it grows its presence as the premier chemical park operator in North America.”
Macquarie Asset Management is a leading global infrastructure asset manager with a focus on operational excellence. It prioritizes investments in high quality, essential assets that can be improved over time and deliver growth and reliable service to customers, as well as the health and safety of employees. Macquarie Asset Management has specific experience in managing and operating industrial parks, regulated utilities and other industry-oriented infrastructure platforms. Over the last 22 years, Macquarie Asset Management has invested or committed $US26+ billion in more than 60 portfolio companies across the Americas region.1
https://www.miragenews.com/macquarie-ups-stake-in-diamond-infrastructure-1525492
August 26, 2025
Avery Dennison to Acquire Meridian’s Flooring Business
Avery Dennison to acquire Meridian’s flooring business 
MENTOR, Ohio – August 25, 2025 — Avery Dennison Corporation (NYSE:AVY), a leading global materials science and digital identification solutions company, today announced it has signed a definitive agreement to acquire the U.S.-based flooring adhesives business of Meridian Adhesives Group, a global adhesives manufacturer, for the purchase price of $390 million. The acquisition is subject to certain customary closing and post-closing adjustments.
Meridian’s flooring adhesives business is a leader in the development, manufacture and commercialization of specialty adhesives and coatings for the U.S. flooring industry, with projected 2025 revenue of approximately $110 million and attractive operating margins. Headquartered in Dalton, Georgia, it operates four manufacturing facilities in the United States and employs approximately 110 people.
“Avery Dennison remains sharply focused on expanding in high-value categories, both organically and through M&A,” said Deon Stander, Avery Dennison president and CEO. “This acquisition will leverage our materials science capabilities, while deepening our specialty adhesives solutions, with a business that is highly regarded within the floor covering industry for its product quality, strong customer relationships and continuous innovation.”
Upon completion of the transaction, the flooring adhesives business will become part of the Avery Dennison Materials Group business. The Meridian flooring adhesives business includes Taylor Adhesives, Polycom and Frontier Products’ brands.
“This acquisition is an excellent fit with Materials Group,” said Ryan Yost, president, Avery Dennison Materials Group. “It adds a valuable set of application-oriented solutions in high-value categories to our adhesives portfolio. We see strong cost and technology synergies that will build on our materials science capabilities, acrylic adhesive expertise and open new application opportunities for us in the flooring industry.”
Ralph Grogan, commercial president of flooring, Meridian, added: “I am incredibly proud of what our teams at Taylor Adhesives, Polycom and Frontier Products have built. With Avery Dennison’s backing and reach, these brands are well-positioned to continue growing and delivering even greater value to our customers.”
Avery Dennison expects the transaction to close in the fourth quarter. It is not expected to have a material impact on the company’s adjusted earnings per share in 2025. Chemlink Partners, LLC and Goodwin Procter LLP advised Avery Dennison on the transaction. Piper Sandler, Moelis & Company, and Weil, Gotshal & Manges LLP advised Meridian on the transaction.
About Avery Dennison Avery Dennison Corporation (NYSE: AVY) is a global materials science and digital identification solutions company. We are Making Possible™ products and solutions that help advance the industries we serve, providing branding and information solutions that optimize labor and supply chain efficiency, reduce waste, advance sustainability, circularity and transparency, and better connect brands and consumers. We design and develop labeling and functional materials, radio-frequency identification (RFID) inlays and tags, software applications that connect the physical and digital, and offerings that enhance branded packaging and carry or display information that improves the customer experience. Serving industries worldwide — including home and personal care, apparel, general retail, e-commerce, logistics, food and grocery, pharmaceuticals and automotive — we employ approximately 35,000 employees in more than 50 countries. Our reported sales in 2024 were $8.8 billion. Learn more at www.averydennison.com.
About Meridian Meridian Adhesives Group is a leading manufacturer of high-performance adhesives, providing cutting-edge solutions across electronics, flooring, infrastructure, packaging, and product assembly markets. With a strong portfolio of innovative brands, Meridian is dedicated to delivering superior adhesive technologies to meet the evolving needs of global customers.
https://www.arsenalcapital.com/news/avery-dennison-to-acquire-meridians-flooring-business
August 21, 2025
Covestro Acquisition
Covestro to Expand Aliphatics Production with Acquisition of Vencorex Sites in Thailand and Texas
August 20, 2025
Covestro has signed an agreement with Vencorex Holding SAS, a subsidiary of Thai chemical company PTT Global Chemical Public Co. Ltd, to acquire two legal entities with stand-alone production sites for HDI (hexamethylene diisocyanate) derivates in Rayong, Thailand, and Freeport, Texas. The legal entities and sites were formerly part of the French aliphatics specialist Vencorex. With this acquisition, Covestro strategically expands and improves its aliphatics production portfolio in the United States and in the Asia-Pacific region. This allows the company to advance the implementation of its “Sustainable Future” corporate strategy by continuing its growth in profitable and innovative business areas like coatings and adhesives.
Both parties have agreed not to disclose the purchase price. The transaction is expected to close by the end of 2025.
“The acquisition of these two former Vencorex sites fits perfectly to our portfolio and our strategic goals,” said Christian Baier, chief financial officer of Covestro. “While we maintain cost discipline to secure our short-term performance, we strengthen our long-term competitiveness through targeted investments like this one.”
Covestro is a well-known supplier for of derivatives, an essential component in polyurethanes coatings, adhesives, and sealants. It can be found in a myriad of applications, like coatings and adhesives for cars, trucks, bridges, ships, wood furniture, and electronics, to name a few. Through the acquisition, Covestro complements its existing capacities in the United States, Germany, China, and India, among others.
“These new capacities in Thailand and the U.S. will augment our existing comprehensive production capabilities across all major regions. They will enable us to produce and deliver according to our customer’s demands even better, especially during current market challenges,” says Thomas Roemer, Head of the Business Entity Coatings and Adhesives at Covestro. “After the acquisition of the Resins & Functional Materials (RFM) business from DSM and investments in organic growth this is yet another sign of confidence the company has in the coatings and adhesives business. I look forward to welcoming the new colleagues into our organization!”
Learn more about Covestro at www.covestro.com.
July 28, 2025
Adnoc Update
Adnoc contests EU findings as €12b Covestro deal faces deeper scrutiny
EU investigates foreign subsidies of Adnoc’s Covestro deal; decision due by December 2
Last updated: July 28, 2025 | 14:45
Justin Varghese, Your Money Editor
2 MIN READ
European Union flags flap in the wind outside EU headquarters in Brussels, Friday, February 21, 2020AP
Dubai: The European Commission launched an in-depth investigation into Abu Dhabi National Oil Company’s (Adnoc) proposed €12 billion (Dh47.8 billion) acquisition of German chemicals firm Covestro.
The probe is part of a newly enforced EU regulation aimed at addressing the competitive impact of foreign state subsidies.
In its official statement, the European Commission said it had “preliminary concerns that foreign subsidies granted by the United Arab Emirates (UAE) could distort the EU internal market.”
Among the subsidies under scrutiny are an “unlimited guarantee” from the UAE government and a potential capital injection from Adnoc into Covestro—both of which may have given Adnoc an edge over any competing bidders.
The Commission argues these benefits might have allowed Adnoc to offer a purchase price and terms that wouldn’t typically be viable for unsubsidised investors, raising fears of unfair competition within the bloc.
ADNOC contests EU findings
In a statement, ADNOC said it “respects the European Commission’s process” but disagrees with the regulator’s initial concerns over its proposed acquisition. The company added it is confident the deal will ultimately be cleared.
“ADNOC has a proven track record in value creation and driving opportunities for growth built on long-term and mutually beneficial partnerships,” the statement said.
”While we respect the European Commission’s process, we contest the preliminary findings of the Commission and are confident that when the facts are fully examined, there will be no reason to hold up clearance of a transaction that will add great value for all stakeholders and stimulate European industry.”
Gulf investments in Europe
While the deal had earlier passed the EU’s traditional merger control process, the new investigation under the Foreign Subsidies Regulation (FSR) reflects rising European caution toward major acquisitions by state-backed companies from the Gulf and beyond.
If the Commission concludes that the deal breaches the regulation, it could force Adnoc to offer significant concessions—or even block the acquisition entirely. A final decision is expected by December 2, 2025.
This isn’t the first time EU regulators have taken issue with UAE state-linked funding. In 2023, Emirates Telecommunications (e&) had to alter terms of its €2.2 billion deal for PPF Telecom assets by dropping an unlimited state guarantee to receive EU approval.
Why this matters now
The EU’s Foreign Subsidies Regulation came into force just over a year ago and has since been used mainly to investigate Chinese investments in rail and clean energy sectors.
For UAE-based firms eyeing strategic assets in Europe, the Covestro case could serve as a landmark moment, shaping how future cross-border deals are structured and scrutinised.
Adnoc, as the UAE’s largest oil producer, has been seeking to diversify globally through downstream and specialty chemicals investments, with the Covestro deal seen as a strategic entry into high-performance polymers used in everything from smartphones to electric vehicles.
If approved, the acquisition would hand Adnoc control of Covestro’s operations across Europe and beyond, with over 18,000 employees worldwide and major customers in auto, electronics, and construction sectors.
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