Adnoc's potential takeover of Covestro is under threat, causing a significant drop in Covestro's shares.

The European Commission, acting as the EU's competition watchdog, has temporarily halted its investigation into the €14.7 billion takeover of Covestro by Adnoc, the state-owned oil company from Abu Dhabi. This decision comes after Adnoc expressed criticism of the EU competition authorities due to what it deems as "disproportionate and invasive" information requirements in the context of a subsidy review for the planned takeover.

Adnoc's spokesperson from its international investment arm, XRG, voiced disappointment with the Commission's decision, stating that the demands exceed what is appropriate or relevant for this transaction. The spokesperson also questioned the feasibility of this investment due to the approach of the EU competition authorities.

These regulatory hurdles have caused renewed doubts about the planned takeover, leading to a significant drop in Covestro's shares. On Thursday afternoon, Covestro shares experienced a notable decline, with the stock initially falling by more than ten percent due to these concerns.

Adnoc had previously warned that such regulatory hurdles could jeopardize the takeover. The criticism from Adnoc and the subsequent temporary suspension of the investigation have raised questions about the future of the deal.

It is important to note that the name of the specific speaker from XRG, who criticized the EU Commission's information related to the Covestro takeover, has not been explicitly mentioned in the available sources. The statements from ADNOC only reference a spokesperson of XRG.

As the situation develops, it will be interesting to see how the EU competition authorities and Adnoc navigate this challenge, potentially impacting not only the takeover of Covestro but also future investments between the EU and Middle Eastern countries.