Abu Dhabi state oil giant ADNOC is set to secure unconditional antitrust approval from the European Union for its €14.7B (~$16.6B) takeover of German chemicals company Covestro (OTCPK:CVVTF) (OTCPK:COVTY), Reuters reported Tuesday.
The European Commission, which is scheduled to decide on the deal by May 12, does not see any competition issues because there are no overlaps between the two companies, according to the report.
The acquisition also is subject to the EU’s Foreign Subsidies Regulation, where the focus is on unfair foreign aid for companies; South African and Indian competition watchdogs have already cleared the deal without demanding remedies.
Covestro (OTCPK:CVVTF) (OTCPK:COVTY), which also narrowed its FY 2025 core profit expectations to €1B-€1.4B from €1B-€1.6B previously, said it does not speculate about regulatory proceedings.
Once the deal is completed, XRG – the international investment arm of ADNOC – will become the new majority shareholder in Covestro (OTCPK:CVVTF) (OTCPK:COVTY).
