Brussels suspects an unfair advantage granted by state support.
The European Commission has formally opened an investigation into Abu Dhabi National Oil Company’s (Adnoc) acquisition of the German chemical firm Covestro. Brussels wants to determine whether the United Arab Emirates (UAE) granted state aid that skewed the bid price and terms, thereby deterring competing offers.
Last year’s definitive agreement between Adnoc and Covestro was struck at a total value of around €11.7 billion, making it one of the largest acquisitions of a European company by a Middle Eastern party to date.
The Commission’s inquiry focuses on two core questions:
1. Did the UAE, through direct or indirect capital injections into Adnoc and/or Covestro, enable Adnoc to offer an “unusually high price” and overly generous financing terms?
2. Does this potential support distort the Single Market by preventing competitors from submitting a genuine counter‑bid?
The European Commission has up to 90 working days to decide whether to approve the transaction unconditionally, impose additional remedies, or block the takeover outright.
