ADNOC Faces EU Decision on Covestro Acquisition by May 12
Deal News | Apr 02, 2025 | Zawya
The European Union's antitrust regulators are expected to make a decision by May 12 on Abu Dhabi National Oil Company's (ADNOC) proposed 15.9 billion euro acquisition of German chemicals company Covestro. This potential acquisition represents ADNOC's largest to date, reflecting the strategic move by Middle Eastern oil-reliant economies to diversify their investments. The European Commission, as the competition overseer for the EU, will determine whether the acquisition can be approved, potentially with conditions, or whether a four-month in-depth investigation is warranted due to preliminary concerns. Additionally, the EU's Foreign Subsidies Regulation could influence the decision, ensuring fair competition given that non-EU companies are acquiring EU-based firms with possible foreign state support.
Sectors
- Oil and Gas
- Chemicals
- Regulatory and Compliance
Geography
- European Union – The decision regarding the acquisition will be made by EU regulators, highlighting the regulatory influence of the EU.
- United Arab Emirates – ADNOC, the company making the acquisition, is based in the UAE.
- Germany – Covestro, the target company, is based in Germany.
Industry
- Oil and Gas – ADNOC is a major player in the oil and gas sector, seeking diversification with its acquisition of a chemical company.
- Chemicals – Covestro is a company operating within the chemicals industry, which is the focus of ADNOC's acquisition proposal.
- Regulatory and Compliance – The article discusses the role of EU regulators in assessing the acquisition deal under antitrust laws and the Foreign Subsidies Regulation.
Financials
- 15.9 billion euros – The valuation of the proposed acquisition deal between ADNOC and Covestro.
- 17.2 billion dollars – The conversion of the deal valuation from euros to dollars.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| ADNOC | Bidding Company | Company | Abu Dhabi National Oil Company, the state-owned oil company of the UAE, aiming to diversify its investments by acquiring Covestro. |
| Covestro | Target Company | Company | A German company operating in the chemicals sector, targeted for acquisition by ADNOC. |
| European Commission | Regulatory Body | Government | The EU's competition watchdog, tasked with deciding on the approval of the acquisition. |