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ADNOC slams EU regulators for 'invasive' demands in subsidy probe into Covestro deal

ADNOC, the state-owned oil company of Abu Dhabi, criticized EU antitrust regulators on Thursday for their disproportionate and intrusive requests for information regarding its $17 billion bid for Covestro in Germany.

The warning was that such demands could even compromise the acquisition.

The criticism comes after the European Commission (which acts as the EU's competition watchdog) announced on Wednesday that it has temporarily halted an investigation in order to wait for ADNOC, the company who requested the information, to respond.

"We are disappointed with the decision today. "The Commission's requirements have gone beyond what is reasonable and relevant for this transaction. They are both disproportionately and invasive," a XRG spokesperson, the international investment arm ADNOC said in an email.

He said that while he was committed to continuing a positive path, the continued use of such a strategy raises serious concerns about the viability and sustainability of the investment.

Once the investigation is resumed, the Commission will establish a new deadline to make a decision. The previous deadline for a decision was 2 December.

The Commission may stop the clock in FSR reviews if the parties do not provide the information it requests within a reasonable time frame.

The EU investigation focuses on possible subventions granted by the United Arab Emirates. This includes an unlimited guarantee and a capital increase committed by ADNOC to chemicals company Covestro. (Reporting and editing by Foo Yunchee)

(source: Reuters)