The European Commission (EU) has granted conditional approval for Abu Dhabi National Oil Company (ADNOC)’s landmark €14.7 billion acquisition of German plastics and chemicals manufacturer Covestro, Reuters reported.
The Commission announced the decision on November 14, requiring ADNOC to adhere to several commitments to address competition concerns.
The conditional green light requires ADNOC to fulfill commitments, including amending its articles of association and allowing other industry players access to specific Covestro sustainability-related patents.
These required measures aim to ease competition concerns that were raised during the review process.
The €14.7 billion takeover is ADNOC’s largest-ever acquisition and is one of the most significant purchases of an EU-based company by a Gulf state.
The deal had drawn intense scrutiny from EU regulators worried that state support could unfairly bolster ADNOC’s bid.
The Commission had paused its investigation in early September while awaiting additional information, then resumed the process on October 24, as sources familiar with the process told Reuters last week.
To address the EU’s concerns, ADNOC had previously agreed to alter governance rules linked to its unlimited state guarantee and pledged to keep Covestro’s intellectual property within Europe, later adjusting its offer after receiving feedback from competitors and customers.
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