ADNOC’s Covestro Acquisition And UAE Entrenchment In the IMEC

The deal anchors UAE at IMEC’s core, fusing Gulf hydrocarbons, advanced materials and corridors with Gaza stabilisation and AMEA normalisation under Trump’s plan.

Source: Bloomberg

The European Commission has conditionally approved ADNOC’s €12 billion acquisition of Covestro under the Foreign Subsidies Regulation. After an in-depth probe into Abu Dhabi’s sovereign support, Brussels forced the removal of an unlimited state guarantee and demanded alignment with standard UAE insolvency rules. ADNOC also agreed to license a package of Covestro’s green technology patents to competitors for a decade under monitored, non-discriminatory terms.

The deals delivers a major producer of advanced polymers used in autos, construction, electronics and renewables. Abu Dhabi moves from hydrocarbons exporter to more vertically integrated energy and materials group tied directly to Europe’s industrial base. The acquisition increases exposure to European regulation yet embeds Emirati capital in the continent’s green transition and the India Middle East Europe Economic Corridor (IMEC). Accordingly, the European Union is tightening control on foreign subsidies while courting Gulf capital to fund its energy security and decarbonisation plans.