In what could become one of Europe’s most significant energy-chemicals tie-ups, Abu Dhabi National Oil Co. (ADNOC) is poised to secure the European Commission’s blessing for its €14.7 billion ($17.1 billion) acquisition of German chemical giant Covestro, according to a Reuters report released Tuesday.
The approval would mark ADNOC’s largest-ever acquisition, a bold stride in its global diversification strategy beyond crude oil and into advanced materials. EU regulators have been scrutinizing the transaction over concerns that ADNOC might be leveraging state-backed subsidies to power its takeover.
To ease those fears, ADNOC reportedly offered to revise its articles of association, removing any clauses tied to unlimited state guarantees, and pledged to keep Covestro’s intellectual property within Europe—a move seen as a goodwill gesture toward regulators.
The deal, initially unveiled in October 2024, proposed a voluntary public takeover at €62 per share, giving Covestro’s shareholders a premium offer amid market volatility in the chemicals sector.
