EU Commission Opens Foreign-Subsidy Probe Into ADNOC’s €12 Billion Covestro Bid

The European Commission has opened an in-depth investigation into Abu Dhabi National Oil Co.’s planned purchase of German plastics producer Covestro AG, a transaction valued at roughly €12 billion ($14 billion). The probe is being carried out under the EU’s recently introduced foreign-subsidy regime, which allows Brussels to block or impose conditions on deals deemed to benefit from distortive state support. Investigators will examine whether assistance from the United Arab Emirates may give ADNOC an unfair advantage in the European market. The review could delay completion of the takeover and may lead to remedies if the commission finds competitive concerns.