ADNOC warns EU unreasonable demands may jeopardize Covestro deal, reports Reuters

EU antitrust regulators are set to pause their investigation into ADNOC's 14.7-billion-euro bid for Covestro, Reuters reports. The temporary halt will give the European Commission more time to gather information on the deal.

The Commission opened an investigation into the deal in July, warning about possible subsidies granted by the United Arab Emirates, including an unlimited guarantee as well as a committed capital increase by ADNOC into Covestro, according to the report.

“We are deeply disappointed by today's decision. 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," a spokesperson for XRG, the international investment arm of ADNOC, said in an email to Reuters.

“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,” he said.

As reported, the Commission will set a new deadline for its decision once the investigation resumes. The previous deadline was December 2.