ADNOC Hits out at EU Over Foreign Subsidies Probe

By Edith Hancock

Abu Dhabi's ADNOC criticized the European Commission after it paused an investigation into its $13.1 billion bid for German chemicals-maker Covestro while it waits for more information, calling the probe "disproportionate and invasive."

The commission--the European Union's executive arm that has the power to scrutinize deals with non-EU state backing--paused its probe of the deal under its foreign subsidies rules on Wednesday. A spokesperson from the commission said it can stop the clock on an investigation if it doesn't receive what it deems is a material piece of information it has requested from the merging parties.

"We are deeply disappointed by today's decision," a spokesperson for ADNOC's natural gas, chemicals and low-carbon energies business XRG said. "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. 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," the spokesperson said.

The watchdog started an in-depth investigation into the transaction in July under the bloc's Foreign Subsidies Regulation, a relatively new EU law designed to tackle distortions in markets caused by outsized investments from foreign governments.

The commission spokesperson said the probe could start again when the parties supply the missing information and a new deadline will be set. Officials initially set a Dec. 2 deadline to close the investigation.

ADNOC--which is owned by the United Arab Emirates capital-- struck a deal to buy Covestro in October last year as part of a move to become a fully integrated energy company on level with U.S. majors such as Exxon Mobil.

Write to Edith Hancock at edith.hancock@wsj.com

(END) Dow Jones Newswires

September 04, 2025 10:36 ET (14:36 GMT)