BRUSSELS: Abu Dhabi state oil giant Adnoc is readying remedies to address a European Union (EU) subsidy investigation into its \u20ac14.7bil (US$17.2bil) bid for Germany\u2019s Covestro that will likely see it convert a proposed \u20ac1.2bil capital hike to a shareholder loan, people familiar with the matter say.<\/p>\n
The deal is Adnoc\u2019s biggest ever acquisition and one of the largest foreign takeovers of an EU company by a Gulf state.<\/p>\n
The European Commission, which acts as the EU competition watchdog, has warned that Adnoc may be benefitting from state subsidies such as an unlimited guarantee and that foreign aid could also be involved in the capital increase at Covestro.<\/p>\n
Adnoc will likely convert the Covestro capital increase to a shareholder loan at market rates, the people said.<\/p>\n
The company also plans to address EU concerns about unlimited state guarantees in the same way United Arab Emirates (UAE) telecoms group e& did to secure EU approval for parts of Czech telecoms company PFF last year, the people said.<\/p>\n
e& agreed to remove its unlimited state guarantee by ensuring that its articles of association do not deviate from ordinary UAE bankruptcy law.<\/p>\n
Adnoc will likely pledge to keep Covestro\u2019s technology and intellectual property in Europe, the people said. \u2014 Reuters<\/p>\n","protected":false},"excerpt":{"rendered":"BRUSSELS: Abu Dhabi state oil giant Adnoc is readying remedies to address a European Union (EU) subsidy investigation…\n","protected":false},"author":2,"featured_media":417324,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5174],"tags":[44385,47990,142997,70962,47992,2000,299,5187,1699,1824,142996,142995],"class_list":{"0":"post-417323","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-eu","8":"tag-acquisition","9":"tag-adnoc","10":"tag-competitionwatchdog","11":"tag-corporate-news","12":"tag-covestro","13":"tag-eu","14":"tag-europe","15":"tag-european","16":"tag-european-union","17":"tag-germany","18":"tag-shareholderloan","19":"tag-subsidyprobe"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/115188958798072482","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/417323","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=417323"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/417323\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/417324"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=417323"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=417323"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=417323"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}