Abu Dhabi’s state oil group offered concessions to the European Union’s competition regulator in a bid to end its probe of the company’s $13.7 billion bid for German plastics maker Covestro.
A spokesperson for the European Commission said Monday that the companies filed remedies to the regulator as part of its investigation but didn’t disclose what they were. An update on the commission website shows the concessions were filed on Thursday.
“Following thorough engagement with the European Commission, we have submitted a robust and proportionate package of proposed commitments,” a spokesperson for XRG, the energy investment arm of Abu Dhabi National Oil Company, said. “They represent our disciplined approach as a long-term investor and underscore the strength of this transaction, and we are confident this will lead to timely clearance.”
XRG is set to be home to Covestro once the deal is closed.
The commission—the EU’s executive arm—had paused its probe in September and suspended its original Dec. 2 deadline to make a decision, saying it was waiting for more information about the transaction. Adnoc criticized the regulator at the time, calling its probe “disproportionate and invasive.”
The commission started investigating Adnoc’s Covestro deal in July under an EU law designed to tackle market distortions caused by companies with heavy subsidizing from non-EU governments. The deal is also being looked at by Germany under rules governing foreign direct investments.
Adnoc announced its bid for Covestro last year—valuing the company at around 11.7 billion euros ($13.74 billion)—in a move that would position the company as a more fully integrated energy group akin to U.S. majors like Exxon Mobil.
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