Adnoc says EU probe delays could jeopardize Covestro deal – reports

Sep. 04, 2025 10:00 AM ETCovestro AG (CVVTF) Stock, COVTY StockBy: Joshua Fineman, SA News Editor

Abu Dhabi’s Adnoc said the European Union competition regulator’s decision to temporarily halt its probe into the Covestro (OTCPK:CVVTF) deal could jeopardize the transaction.

“While we remain committed to pursuing a constructive path forward, the continuation of such an approach raises serious questions about the viability of this investment,” a spokesperson for XRG, the international investment arm of Adnoc, told Reuters and MLex in an email.

The European Commission was set to decide on the probe by Dec. 2, though it will now set a new deadline.

“We are deeply disappointed by today’s decision,” the spokesperson for XRG told the news outlets. “The Commission’s demands have strayed far beyond what is reasonable or relevant to this transaction, crossing into areas that are both disproportionate and invasive.”

Covestro shares fell as much as 11% on Thursday in Frankfurt.

The European Commission in late July announced it was starting an in-depth probe into Abu Dhabi National Oil Co.’s €11.7B (~$13.75B) acquisition of Covestro (OTCPK:CVVTF) (OTCPK:COVTY) under the European Union’s tough new foreign subsidy rules. The EC said it will investigate concerns that Adnoc’s state funding by the United Arab Emirates could allow it to behave in a way that interferes with fair competition across the bloc.

https://seekingalpha.com/news/4492336-adnoc-says-eu-probe-delays-could-jeopardize-covestro-deal—reports?mailingid=41424182&messageid=2900&serial=41424182.162&source=email_2900