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.