— By Plasteurope.com staff — 

The European Commission now plans to review the planned takeover of Covestro (Leverkusen, Germany; www.covestro.com) by the state-controlled Emirati petrochemical giant, Abu Dhabi National Oil Company (Adnoc, Abu Dhabi; www.adnoc.ae) under the antitrust law, according to news agency Bloomberg. The legal basis for the investigation is the EU’s Foreign Subsidies Regulation, which came into force in July 2023. It grants the authorities in Brussels powers to review state or state-sponsored investments from non-European countries.

There are concerns that Adnoc, as a state-owned oil company, could lead to market distortions in the European single market and supposedly distort competition. According to Bloomberg, it is not yet clear whether the EU will scrutinise the planned deal. A decision on this could be made by the end of July. If the Commission concludes that Adnoc’s takeover of Covestro violates European competition law, it could impose fines – or even prohibit the purchase altogether.

Covestro responded to a Plasteurope.com enquiry saying, “We continue to assume without reservation that the closing will take place in the second half of the year.” At a press event in mid-June, Covestro CEO Markus Steilemann emphasised that the planned acquisition was close to being approved by the authorities.