On Monday 28 July, the European Commission announced that it was opening an in-depth investigation into the acquisition of the German chemicals company Covestro by ADNOC, the main national oil company of the United Arab Emirates. The investigation is being carried out under the regulation to prevent unfair foreign subsidies.
ADNOC has received aid from the United Arab Emirates (UAE) that could potentially distort competition, according to the European Commission. This involves an unlimited guarantee from the UAE and a capital increase by ADNOC in the target company Covestro.
The Commission suspects that this support may have enabled the purchase to be made on advantageous financial terms that non-subsidised investors would not have been able to match.
It is also concerned that the transaction could enable ADNOC to adopt investment strategies that could distort competition in the internal market.
German company Covestro specialises in the supply of high-performance polymers and components. It supplies various sectors and currently has around 18,000 employees.
The Commission has until 2 December 2025 to take a decision on the transaction. If it concludes that there is an unfair foreign subsidy, it could go so far as to prohibit the acquisition. It could also accept commitments from ADNOC to restore a level playing field. (Original version in French by Léa Marchal)