The European Commission announced on 28 July that it has opened an “in-depth investigation to assess” Adnoc’s purchase of German chemicals firm Covestro (MEES, 4 October 2024). The EC cites “preliminary concerns that foreign subsidies granted by the United Arab Emirates (‘UAE’) could distort the EU internal market.” The move has caused renewed jitters over whether the deal will secure EC Foreign Subsidies Regulation (FSR) clearance (MEES, 6 June), but informed sources still point to the deal ultimately being approved.
One brokerage source highlights that the announcement’s reference to “possible” rather than realized foreign subsidies “and seems more focused on the acquisition process rather than the competitive position of the combined entity going forwards, the latter of which is the FSR’s primary intention.” (CONTINUED – 122 WORDS)
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