EU BASIC INDUSTRIES: Covestro: ADNOC/Santos Had Own Problems
Base case is still that ADNOC/Covestro will go ahead.
• The FT has a good review of what went wrong at Santos.
• Domestic opposition from Unions and Politicians.
• Santos insisting that XRG pay the capital gains tax liability of the deal.
• Methane leak in Darwin which was not disclosed.
• The EU is using Foreign Subsidies Regulation to investigate the Covestro deal.
• The EU "stopped the clock" on the deal on 3rd Sep as it required more information. ADNOC was said to be making additional remedies on 11th Sep (Reuters) regarding converting a capital hike into a shareholder loan.
• The EU ultimately approved Etisalat's (e&) takeover of PPF assets.
(COVEGR; Baa2/NR/NR)
FT Link
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