Commission launches in-depth investigation under Foreign Subsidies Regulation into ADNOC’s acquisition of Covestro
The Commission has launched an in-depth investigation under the Foreign Subsidies Regulation (FSR) into Abu Dhabi National Oil Company PJSC’s (ADNOC), a state-owned oil and gas producer, proposed acquisition of German chemicals company Covestro, due to concerns that subsidies from the UAE may distort competition in the EU internal market.
The Commission is investigating whether UAE subsidies, including an unlimited guarantee and capital injection, may have enabled ADNOC to acquire Covestro on terms not aligned with market conditions, potentially deterring other bidders and distorting competition. It will assess if these subsidies impacted the acquisition process and could negatively affect the EU internal market post-merger. The Commission has until 2 December 2025 to take a decision.
For more information, see the Commission’s PR.