ADNOC bid for Germany’s Covestro probed by EU regulators
ADNOC’s $14 billion bid to acquire German plastic maker Covestro may be in trouble.
European Union regulators announced a formal investigation on Monday over concerns that the Abu Dhabi oil company’s state funding gives it an advantage that could hamper fair competition.
The acquisition of Covestro was previously approved, but the investigation adds a new wrinkle to the deal.
EU regulators issued a statement saying that a guarantee by the UAE to support the purchase of Covestro may have enabled ADNOC to make an offer with a valuation and financial terms that competitors couldn’t match.
The Abu Dhabi company said it will contest the findings.
Boeing 787 Dreamliner under scrutiny after Air India tragedy
U.S. planemaker Boeing is back in the spotlight as investigators probe the cause of yesterday’s Air India plane crash that killed more than 290 people in the world’s worst aviation disaster in a decade.
The Indian government is reportedly considering grounding the airline’s entire Boeing 787 Dreamliner fleet as a precaution while the cause of the disaster is determined.
While multiple avenues of investigation are open, early inquiries are considering whether the aircraft suffered a reduction or loss of engine thrust, The Wall Street Journal reports.
The crash complicates Boeing’s turnaround efforts under new Chief Executive Kelly Ortberg, just days after the company reported a healthy May order book and ahead of the crucial Paris Air Show next week.
There are more than 1,100 Dreamliners in service around the world and just last month Boeing celebrated carrying its billionth customer on the model, which has so far had a good safety record. Boeing shares fell by almost 5% on Thursday.
