Petrochemicals Adnoc expects EU approval for Covestro deal By Reuters May 7, 2025, 9:22 AM Covestro A Covestro laboratory. The EU competition watchdog is scheduled to decide on Adnoc's takeover of the German company by May 12 Abu Dhabi state oil major Adnoc is set to secure unconditional European Union (EU) antitrust approval for its €14.7 billion ($16.6 billion) takeover of German chemicals company Covestro, two people with direct knowledge of the matter said. The deal, Adnoc’s biggest ever, underscores Middle East countries’ plans to diversify their investments and reduce dependence on oil amid the global transition to cleaner energy. The European Commission does not see any competition issues because there are no overlaps between the two companies, the people said. Once the deal is completed, XRG – the international investment arm of Adnoc – will become the new majority shareholder in Covestro, which makes plastics and chemicals for the automotive, construction and engineering sectors. The EU competition watchdog, which is scheduled to decide on the deal by May 12, declined to comment. Adnoc, which expects to close the deal in the second half of this year, could not be immediately reached for comment. Covestro, which earlier cut its 2025 core profit expectations, said it does not speculate about regulatory proceedings. The South African and Indian competition watchdogs have already cleared the deal without demanding remedies. Adnoc’s big bet on petrochemicals Adnoc targets foreign listing of investment arm XRG Gulf oil companies turn up petrochemicals investment The acquisition is also subject to the EU’s Foreign Subsidies Regulation (FSR), where the focus is on unfair foreign aid for companies. The rules aim to rein in unfair competition from non-EU companies subsidised by their governments. “XRG and Covestro are working constructively with all relevant authorities on the FSR, FDI and Merger Control filings. We are confident that all outstanding approvals can be obtained within the long-stop date (December 2, 2025),” the company said in an email. Adnoc has yet to seek FSR clearance for the deal. It secured unconditional EU approval last year under the FSR for its acquisition of fertiliser firm Fertiglobe. Register now: It’s easy and free AGBI registered members can access even more of our unique analysis and perspective on business and economics in the Middle East. Why sign uP Exclusive weekly email from our editor-in-chief Personalised weekly emails for your preferred industry sectors Read and download our insight packed white papers Access to our mobile app Prioritised access to live events Register for free Already registered? Sign in I’ll register later Register now: It’s easy and free AGBI registered members can access even more of our unique analysis and perspective on business and economics in the Middle East. Why sign uP Exclusive weekly email from our editor-in-chief Personalised weekly emails for your preferred industry sectors Read and download our insight packed white papers Access to our mobile app Prioritised access to live events Register for free Already registered? Sign in I’ll register later
