Adnoc’s €12 billion Covestro takeover wins EU approval

Investing.com -- Abu Dhabi National Oil Co. received conditional European Union approval for its €12 billion ($13.9 billion) acquisition of Covestro AG after addressing competition concerns related to state subsidies.

The European Commission announced Friday that Adnoc’s commitments to maintain Covestro’s intellectual property in Europe and concessions regarding the unlimited state guarantee from the UAE resolved earlier regulatory concerns. These commitments will remain in effect for 10 years.

EU competition chief Teresa Ribera stated that the commitments "effectively address the potential negative effects by allowing market participants to access key Covestro patents in the field of sustainability." She added that "clear, pre-defined access to these patents will enable others to innovate and advance research in an area that is critical for Europe’s future."

The acquisition will give Adnoc, the UAE’s largest oil producer, control of the German company that provides materials to major phone and car manufacturers. Adnoc plans to own Covestro through its investment unit XRG, which was established last year as the company’s international platform for natural gas, chemicals and energy solutions.

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