Adnoc’s €12 Billion Covestro Deal Faces Likely In-Depth EU Probe

Abu Dhabi National Oil Co.’s €11.7 billion ($13.7 billion) takeover of Covestro AG is facing the prospect of an in-depth European Union investigation, under powers that can curb influential foreign investment into the region.

EU regulators are preparing the probe under its powerful Foreign Subsidies Regulation by the end of the month, according to people familiar with the matter. Regulators are concerned that Adnoc’s heavy state backing could allow it to distort European markets and hamper fair competition across the bloc, the people said, adding that the EU’s decision was still in draft form and might change.