The EU will investigate Abu Dhabi National Oil Co.’s planned $14 billion takeover of German chemical company Covestro, a move that may hamper other Gulf investment plans in Europe. Regulators said the probe stems from concerns that state support for ADNOC could distort competition in the bloc’s market. ADNOC has been working on the deal for two years and sees it as central to its strategy to expand in chemicals and extract more value from hydrocarbons. The company has contested the EU’s accusation.
Launched under rules enacted in 2023, the probe marks a tougher stance on foreign government-backed acquisitions and could deter other Gulf investors if too many obstacles are placed on the deal. The EU’s move contrasts with that of the US, which aims to attract more foreign capital under the America First Investment Policy.
Following US President Donald Trump’s trip to the region in May, the Committee on Foreign Investment in the United States said it was working on a fast-track process for approving investments by allied nations — addressing a common complaint from Gulf state-backed firms about regulatory delays.