The UAE's ADNOC Continues Exploring Latin American Chemical Investment Opportunities

The UAE's Abu Dhabi National Oil Company (ADNOC) has increasingly looked beyond its traditional energy business to build a global chemicals portfolio. Its proposed acquisition of a controlling stake in Brazil's Braskem was one of the clearest examples of this strategy. In November 2023, ADNOC offered about $2.1 billion for Novonor's 38.3% economic stake, but the proposal ultimately failed after negotiations broke down over valuation.

Why Braskem Was Strategically Attractive

Braskem would have given ADNOC a major foothold in Latin America's petrochemical industry and access to an established producer of resins and other commodity chemicals. The proposed structure also contemplated working alongside Petrobras, which already held a significant stake in Braskem. Although ADNOC eventually walked away from the transaction in May 2024, the bid demonstrated that Latin American chemicals assets were already part of its global expansion strategy.

The Braskem Failure Did Not End the Strategy

ADNOC's unsuccessful Braskem pursuit should therefore be viewed as one transaction within a broader push to expand its chemicals exposure. The company has pursued assets across the value chain and has used international acquisitions to move further into polymers and specialty chemicals. Its subsequent success with Covestro reinforces the idea that ADNOC's interest in global chemical assets was not dependent on completing the Brazilian transaction.

Covestro Shows a Different Outcome

ADNOC ultimately completed its takeover of German chemicals producer Covestro in December 2025 after launching the public offer in 2024. The transaction gave ADNOC control of a major European polymer and specialty materials producer and represented a substantially larger commitment than its earlier Braskem proposal. Covestro's 2025 annual report confirms that ADNOC acquired more than 154 million shares through the takeover and capital increase.

Latin America Remains Strategically Relevant

The Braskem episode is particularly important because Latin America offers access to established petrochemical production, large domestic markets and regional feedstock networks. However, the failed bid also demonstrates the challenges of executing cross-border chemical acquisitions when sellers, creditors and strategic shareholders have competing expectations. ADNOC's experience with Braskem may therefore influence how it approaches future opportunities in the region.

The Intelligence Takeaway

ADNOC's Braskem bid shows that Latin American chemicals remain part of the UAE energy giant's global diversification ambitions, even though that particular transaction failed. The later Covestro takeover demonstrates that ADNOC has been able to convert its chemical ambitions into major completed acquisitions elsewhere. For Latin American chemical companies, the broader signal is that Middle Eastern energy investors can remain potential sources of strategic capital as global petrochemical ownership continues to consolidate.