Three months after opening its investigation under the Foreign Subsidies Regulation (see EUROPE 13689/2), the European Commission finally authorised the takeover of the German chemicals company Covestro by leading Emirati oil company ADNOC on Friday 14 November. However, the EU is imposing conditions on the buyout, since it has concluded that the Emirati company had received subsidies that gave it an advantage over the competition.
ADNOC undertook to amend its Articles of Association so that it would no longer benefit from the unlimited Emirati state guarantee, which was causing the issue.
It will also have to share Covestro’s patents in the area of sustainability with certain market players, under conditions that are considered transparent and fixed upstream.
The German company is a world leader in the production of advanced technology polymer materials and holds numerous patents relating in particular to direct coating technologies.
According to the European Commission, these two conditions will remove the advantage of the unlimited guarantee and will also benefit other economic operators in terms of innovation.
“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”, explained Teresa Ribera, Vice-President of the European Commission. (Original version in French by Léa Marchal)