Covestro shareholders have grown increasingly anxious amid the stalemate between Adnoc’s international investment arm, XRG, and the European Commission (EC). When a $13bn takeover agreement for Covestro was reached in October 2024, the EC’s foreign subsidies regulation (FSR) was not expected to be an impediment (MEES, 4 October 2024). Things have not played out that way, but the impasse could be broken in a matter of weeks, if not days.
XRG has grown increasingly frustrated at the level of information requests from the EC and the inflexibility shown, and industry sources note that they arguably have a point. However, clearing FSR is a non-negotiable for completing the Covestro purchase and shareholders are concerned that a stalemate could blow up the entire transaction, which has a long-stop date of 2 December. All parties are aware of the importance of the date, and what is required in order to meet it. (CONTINUED - 1069 WORDS)
