Latest news with #Covestro
Zawya
3 days ago
- Business
- Zawya
ADNOC and Covestro deal review suspended as EU awaits more information
BRUSSELS - EU regulators have paused their review of Abu Dhabi state oil giant ADNOC's 14.7 billion euro ($16.7 billion) acquisition of German chemicals company Covestro while awaiting information from the companies. The deal, approved under EU merger rules last month, is now being scrutinised under the bloc's Foreign Subsidies Regulation (FSR), which takes aim at unfair foreign aid for companies. The European Commission said it stopped the clock on May 28. "Once the missing information is supplied by the parties, the clock is re-started and the legal deadline for the Commission's decision is then adjusted accordingly," a Commission spokesperson said. Its previous deadline for its decision was June 24. ($1 = 0.8787 euros)
The Herald Scotland
19-05-2025
- Business
- The Herald Scotland
Despite this deal, EU is moving forward and UK risks being left behind
And the UK is not far behind. Across the country, factory closures have devastated entire communities, particularly in vulnerable areas of Scotland and Wales, the former of which is currently reeling from the closing of Grangemouth oil refinery. Read more New partnerships are needed but the Westminster has yet to face the facts. Donald Trump's return has added another spanner to the works. His tariff flip-flopping, enmity with China, and repeated accusations of European 'freeloading' serve as constant reminders that the familiar trans-Atlantic alliance is nearing a rock bottom. And despite recent polls suggesting that almost 50% of British voters fear that Trump will worsen the UK economy and threaten national security, Prime Minister Starmer dove straight into negotiations - emerging last week with a trade deal so weak, famed American economist Joseph Stiglitz said 'it isn't worth the paper it's written on.' But the UK is playing in both ways. Starmer welcomed European leaders to a historic Brexit reset summit in London, aiming to strengthen relations after years of chaos. He is claiming triumph as the UK government and the EU have reached a new deal setting out post-Brexit relations on areas including fishing rights, trade and defence. The deal, as far as it goes, is welcome and the foundation for a strong partnership with the EU is already there. After all, the UK imports over 50% of goods from Europe versus a meagre 10% from the US. But the EU, with its strong vision, will not be bullied into entering a partnership, even peripheral, with the deregulation, fossil fuel extraction, chlorinated chicken, or any of the other host of things that a deal with Trump precludes. Nor should it. After all, the EU doesn't need the US – especially not when budding economic regions are becoming strategically more aligned with Brussels on critical vectors like climate change, energy, AI and defence. Just a few months ago, Dassault Aviation delivered the first batch of its superior Rafale fighter jets to the United Arab Emirates (UAE). The French defense company was contracted as part of a broader €17 billion security agreement between the two countries. Not only has Dassault made a profit, but the deal is also supporting an estimated 7,000 French jobs until at least 2031. Read more Even Germany has tasted the potential. One of Europe's leading chemicals corporations is close to acquiring the Abu Dhabi National Oil Company (ADNOC) for almost €15 billion. Covestro, which specialises in innovative plastic materials and advanced recycling technologies, had once contributed roughly 5% of Germany's GDP before finding itself in the grip of Germany's fiscal crisis. However, with ADNOC's cash injection – which is part of a larger plan to inject 150bn in capital through 2027 - it has accelerated its ambitious growth strategy allowing it to invest in the sustainable solutions of tomorrow. At the same time, the Covestro acquisition has supported ADNOC's strategic decision to diversify beyond oil and gas, futureproofing its business through the choppy waters of the global energy transition. And the firm is playing a key role in achieving its country's climate ambitions underscored by the UAE Consensus, which are far more similar to those of the EU than they are to Trump's 'drill, baby, drill'. These developments should serve as a wake-up call for the UK. Like the EU, Britain must refine its priorities, reduce wasteful spending, and aggressively pursue investment in areas like green energy, defence tech, and AI. Only by doing so can it attract the foreign capital it sorely needs. Sooner rather than later Starmer will face a choice: Will he cling to the crumbling mythology of a 'special relationship' with the US, or will he embrace a more dynamic, forward-facing partnership with Europe and the rest of the world? Gilberto Morishaw is an expert on international governance, innovation and systems thinking, having previously served as a youth advisor to the European Commission for International Partnerships. Morishaw is also a Senior Fellow at Humanity in action, a TILN Fellow of the German Marshall Fund and a Global Shaper at the WEF. He is a co-founder of Merge Collective, which aims to bring policy into the web3 era, and the former Head of Impact at Kolektivo, which provides micro-grants to community builders on his home Island of Curaçao.
Zawya
16-05-2025
- Business
- Zawya
ADNOC seeks EU okay under foreign subsidies rules for Covestro deal
BRUSSELS - Abu Dhabi state oil giant ADNOC on Thursday sought EU approval under the bloc's foreign subsidies rules for its 14.7-billion-euro ($16.4 billion) acquisition of German chemicals company Covestro, according to a filing on the European Commission site. ADNOC, which last week won the green light under EU merger rules for the deal, is making its biggest ever acquisition, underscoring Middle East countries' diversification of their investments to reduce their dependence on oil. The EU's Foreign Subsidies Regulation (FSR) takes aim at unfair foreign aid for companies with the goal of reining in competition from non-EU companies subsidised by their governments. The European Commission, which acts as the antitrust regulator for the 27-country bloc, set a June 24 deadline for its decision. It can open a full-scale investigation after 25 working days if it has serious concerns. Such a so-called in-depth probe would take 90 working days, which can be extended by 3 weeks if companies offer remedies to address concerns. Last year, a bid by UAE telecoms group e& for parts of Czech telecoms company PPF's assets was only cleared after it offered to remove an unlimited state guarantee and agreed not to provide foreign subsidies to the merged entity. The case was the first full-scale probe under the FSR. ($1 = 0.8945 euros)
Reuters
15-05-2025
- Business
- Reuters
ADNOC seeks EU okay under foreign subsidies rules for Covestro deal
BRUSSELS, May 15 (Reuters) - Abu Dhabi state oil giant ADNOC on Thursday sought EU approval under the bloc's foreign subsidies rules for its 14.7-billion-euro ($16.4 billion) acquisition of German chemicals company Covestro ( opens new tab, according to a filing on the European Commission site. ADNOC, which last week won the green light under EU merger rules for the deal, is making its biggest ever acquisition, underscoring Middle East countries' diversification of their investments to reduce their dependence on oil. The EU's Foreign Subsidies Regulation (FSR) takes aim at unfair foreign aid for companies with the goal of reining in competition from non-EU companies subsidised by their governments. The European Commission, which acts as the antitrust regulator for the 27-country bloc, set a June 24 deadline for its decision. It can open a full-scale investigation after 25 working days if it has serious concerns. Such a so-called in-depth probe would take 90 working days, which can be extended by 3 weeks if companies offer remedies to address concerns. Last year, a bid by UAE telecoms group e& ( opens new tab for parts of Czech telecoms company PPF's assets was only cleared after it offered to remove an unlimited state guarantee and agreed not to provide foreign subsidies to the merged entity. The case was the first full-scale probe under the FSR. ($1 = 0.8945 euros)
Zawya
13-05-2025
- Business
- Zawya
ADNOC wins unconditional EU antitrust approval for Covestro deal
Abu Dhabi state oil giant ADNOC on Tuesday won unconditional EU antitrust approval for its 14.7 billion euro ($16.3 billion) takeover of German chemicals company Covestro, confirming an earlier Reuters exclusive. "The Commission concluded that the notified transaction would not raise competition concerns, given its limited impact on competition in the markets where the companies are active," said the European Commission in a statement. The deal, ADNOC's biggest ever, underscores Middle East countries' plans to diversify their investments and reduce dependence on oil amid the global transition to cleaner energy. ($1 = 0.9003 euros) (Reporting by Foo Yun Chee; Editing by Sudip Kar-Gupta)
