The European Commission has announced that its antitrust regulators will make a decision by May 12 on whether to approve or reject Adnoc’s acquisition of the German chemical company Covestro. This deal, valued at €15.9 billion (approximately $17.2 billion), represents Adnoc’s largest acquisition to date, which was agreed upon in October of last year as Middle Eastern countries aim to reduce their reliance on oil.

The European Commission, which serves as the executive body for competition oversight in the EU’s 27 member states, has the authority to approve the transaction with or without conditions. Alternatively, it may choose to open a four-month investigation following its initial review.

Additionally, transactions where companies outside the EU acquire businesses within the bloc may be subject to the bloc’s foreign subsidy regulation. This regulation enables the Commission to take stringent actions against unfair foreign government subsidies provided to companies. It is noteworthy that the UAE’s Etisalat Group only received approval for its bid for portions of the Czech telecommunications firm PPF last year after offering concessions.