{"id":103395,"date":"2025-05-07T00:00:00","date_gmt":"2025-05-07T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/uae\/this-morning-eu-antitrust-regulators-set-to-give-their-ok-to-adnoc-for-covestro-takeover-fed-likely-to-keep-rates-unchanged-at-meeting-today\/"},"modified":"2025-05-07T00:00:00","modified_gmt":"2025-05-07T00:00:00","slug":"this-morning-eu-antitrust-regulators-set-to-give-their-ok-to-adnoc-for-covestro-takeover-fed-likely-to-keep-rates-unchanged-at-meeting-today","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/uae\/2025\/05\/07\/this-morning-eu-antitrust-regulators-set-to-give-their-ok-to-adnoc-for-covestro-takeover-fed-likely-to-keep-rates-unchanged-at-meeting-today\/","title":{"rendered":"THIS MORNING: EU antitrust regulators set to give their OK to Adnoc for Covestro takeover + Fed likely to keep rates unchanged at meeting today"},"content":{"rendered":"

Good morning, friends, and happy first hump day of May. <\/strong>It\u2019s a busy week on the conference front, but not so much in terms of news, with only one big story from Abu Dhabi\u2019s Promax as it launches a JV with Palm Global for a digital investment platform and a stablecoin. Plus: We have more earnings reports for you, this time from International Holding Company, Adnoc Distribution, Burjeel, and HSBC. <\/p>\n

ALSO- Topping our newswell this morning is our takeaway from day one of the Dubai Capital Market Summit<\/strong>, where economists, equity strategists, analysts, and top company executives are gathering to talk about the road ahead for capital markets in the UAE \u2014 both this year amid global headwinds like tariffs, and further down the line. <\/p>\n

Taking place one day after Dubai Holding announced plans to take a stake in its Dubai Residential REIT to market, the dominant theme was that of optimism and strong appetite<\/strong> \u2014 from local, regional, and global investors and players alike. Fast-growing unicorns like Tabby and Kitopi are staying the course on their IPO plans \u2014 with the former eyeing one in the next 12-18 months and Kitopi looking to hit the bourse in 2-3 years \u2014 while global investors are bullish on the UAE \u2014 saying it is still under-represented in global portfolios. We have more from day one in the news well, below. <\/p>\n

?\ufe0f<\/strong>WEATHER<\/strong>- It\u2019s going to be a windy and dusty day<\/strong>, according to our favorite weather app and the National Center of Meteorology, which expects gusts of wind and blowing dust to impact visibility. Dubai will see daytime highs of around 35\u00b0C today, dipping to 29\u00b0C overnight. Abu Dhabi will be a touch cooler, with highs of 30\u00b0C and nighttime lows of around 27\u00b0C. <\/p>\n

WATCH THIS SPACE- <\/p>\n

<\/a> #1-<\/strong> EU antitrust regulators set to give their OK to Adnoc for Covestro takeover: <\/strong>Adnoc is reportedly on track to secure unconditional approval from EU antitrust regulators for its proposed takeover of German chemicals giant Covestro, Reuters<\/a> reports, citing two people it says have knowledge of the matter. Sources said the European Commission doesn\u2019t see any reason to object to the acquisition because of the absence of competitive overlap between the two firms. The EUR 14.7 bn transaction \u2014 expected to close in 2H \u2014 would mark the largest acquisition<\/a> of a European company by a Middle Eastern buyer in 16 years. Once completed, Adnoc\u2019s new low-carbon energy investment arm XRG will become a majority shareholder in Covestro. <\/p>\n

The wait won\u2019t be long: <\/strong>EU competition watchdogs will decide on the takeover\u2019s fate next week<\/a>, with a final verdict due Monday, 12 May, after which the transaction could still be subject to a four-month investigation depending on the results of the preliminary review. Regulatory clearances from countries where Covestro operates have already started pouring in<\/a>, while Covestro also said it is confident it will receive all the approvals before the deadline in an emailed statement to Reuters. <\/p>\n

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<\/a> #2-<\/strong> Mubadala Capital-backed TWG Global eyes AI-driven acquisitions, AI platform with xAI: <\/strong>TWG Global, the investment vehicle of b'naires Thomas Tull and Mark Walter, is targeting major acquisitions and AI-driven investments across financial services, sports, and defense, the Financial Times<\/a> reports. The firm is nearing the completion of its USD 15 bn equity raise, which includes a USD 10 bn syndicated investment<\/a> from Mubadala Capital.<\/p>\n

Background: <\/strong>The company \u2014 founded by Guggenheim Partners\u2019 Mark Walter and financier Thomas Tull \u2014 pooled together USD 40 bn in personal investments from its founders, including stakes in sports teams Chelsea FC and the Los Angeles Dodgers, as well as Guggenheim and fast-growing startups in defense and cyber security. The recently secured outside capital will now support its plans to make acquisitions based on AI-driven insights, according to Tull. <\/p>\n

TWG is also preparing to launch an AI platform designed to help banks and ins. firms process and analyze vast amounts of financial data, <\/strong>developed in partnership with Elon Musk\u2019s xAI and data intelligence company Palantir.<\/p>\n

ICYMI-<\/strong> TWG Global acquired a 5% stake in Mubadala Capital for USD 2.5 bn, with plans to increase this stake as the partnership evolves. The company is also targeting an additional USD 20 bn in long-term capital commitments to further strengthen the partnership.<\/p>\n

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#3-<\/strong> State oil giant Adnoc\u2019s maiden USD 1.5 bn sukuk is now listed on the <\/strong>London <\/strong>Stock Exchange<\/strong>, state news agency Wam<\/a> reports. The 10-year Sharia-compliant trust certificate raised USD 1.5 bn<\/a> for general corporate purposes was priced at a 4.75% annual profit rate, and matures on 6 May 2035. The issuance saw strong demand from global Islamic investors and drew USD 3.85 bn in orders. Adnoc Murban also raised USD 4 bn in June 2024 from a three-tranche bond issuance<\/a> under its global medium-term note program.<\/p>\n

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<\/a> #4- The UAE now aims to increase<\/strong> Islamic bank assets to AED 2.6 tn within six years<\/strong>, up from AED 986 bn currently, and boost the value of sukuk issued and listed on UAE exchanges, as part of a strategy approved by the Cabinet yesterday, according to a statement<\/a>. The strategy aims to raise the value of local sukuk issuance to over AED 660 bn within the same time frame, and international sukuk listed in the UAE to AED 395 bn.<\/p>\n

#4- <\/strong>Ewec opens newe<\/strong>st CEC auction:<\/strong> Ewec has opened up registration for its 2Q 2025 Clean Energy Certificates auction, Wam<\/a> reports. The auction for CECs<\/a> \u2014 tradable clean energy tracking digital certificates representing 1 MWh of clean energy delivered to the electricity grid from a renewable energy source \u2014 will accept submissions until 13 June.<\/p>\n

REFRESHER-<\/strong> The CECs include wind energy CECs<\/a> after Ewec debuted the certificates<\/a> in 3Q 2024. They were also included in the company\u2019s 4Q 2024<\/a> auction.<\/p>\n

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#5- <\/strong>Turk Mart to f<\/strong>ollow Bharat Mart: <\/strong>DP World is currently developing a market for Turkish traders \u2014 Turk Mart \u2014 which will be built on Sheikh Mohammed bin Zayed Road adjacent to Dubai\u2019s Expo City, CEO and managing director Abdulla bin Damithan told Khaleej Times<\/a>. The Turkish market takes inspiration from the upcoming market for Indian traders, Bharat Mart, which is poised to be operational by 2026 and slated to operate at full capacity by 2027. The two markets will be located alongside the Yiwu Market<\/a> \u2014 a 200k sqm site designated for Chinese traders composed of 1.6k showrooms, open since 2022.<\/p>\n

Background:<\/strong> Dubai-based port operator DP World kickstarted the development<\/a> of Bharat Mart \u2014 a warehousing and trading hub designed for Indian MSMEs \u2014 in April. <\/p>\n

DATA POINT- <\/p>\n

Members of the Dubai Chamber of Commerce saw its exports and re-exports climb<\/strong> 16.8% y-o-y to AED 86 bn in 1Q 2025<\/strong>, it said in a statement<\/a>. The chamber issued over 204k certificates of origin, up 7% y-o-y, and 1.6k ATA carnets \u2014 temporary import-export documents offering exemptions from tax and customs duties for one year \u2014 for goods worth AED 984 mn. Some 18.2k companies joined the chamber in the quarter.<\/p>\n

Looking globally:<\/strong> The chamber also helped 28 local firms expand internationally \u2014 up 75% y-o-y \u2014 and reviewed 10 laws with 55% of private sector recommendations adopted. Two new business councils \u2014 with Indonesia<\/a> and Hungary<\/a> \u2014 were launched in the quarter.<\/p>\n

HAPPENING TODAY- <\/p>\n

<\/a> #1<\/strong>- The US Federal Reserve\u2019s <\/strong>is widely expected to keep interest rates unchanged in its meeting today<\/strong>, despite weeks of scrutiny from US President Donald Trump over the Fed\u2019s monetary policy direction, Reuters<\/a> reports. We\u2019ll have an update on the decision \u2014 and the Central Bank of the UAE\u2019s move, likely the same due to the peg to the USD, following the decision \u2014 in tomorrow\u2019s issue. <\/p>\n

#2- The <\/strong>Capital Market Summit<\/a><\/strong> will wrap up today<\/strong> at Madinat Jumeriah in Dubai. The summit addresses IPO growth, global economic forecasts, and digital assets\u2019 role in financial markets. Speakers include UAE ministers and DFM Chairman Helal Saeed Al Marri, and sessions will analyze stock exchange dynamics, virtual assets, and growth capital strategies.<\/p>\n

#3- The <\/strong>Airport Show<\/a><\/strong>, taking place alongside the <\/strong>Global Airport Leaders Forum<\/a><\/strong>, will wrap up tomorrow <\/strong>at Dubai World Trade Center (DWTC). The events will bring together airport and aviation industry professionals to discuss the latest trends in airport infrastructure, emerging technologies, and solutions to industry challenges. <\/p>\n

#4- <\/strong>Seatrade Maritime Logistics Middle East<\/a><\/strong> is also on its final leg today <\/strong>at DWTC. The event will bring together professionals in shipping, logistics, and supply chain management to discuss and debate industry challenges and the latest innovations. <\/p>\n

#5- <\/strong>Gulf Information Security Expo & Conference<\/a><\/strong> (GISEC Global) is wrapping up today<\/strong> at DWTC. Cybersecurity experts will meet to discuss industry challenges including new cyber threats, security technologies, and solutions for protecting businesses against cyberattacks. Over 750 cybersecurity brands will exhibit their solutions.<\/p>\n

#6- The Abu Dhabi Department of Economic Development (ADDED) is leading a <\/strong>delegation of senior officials and business leaders to Japan<\/strong> from yesterday until Friday, 9 May, according to the Abu Dhabi Media Office<\/a>. The five-day visit aims to explore possibilities for more investment cooperation, and expand trade and industrial ties. A trade and economic partnership agreement between the two sides is expected to be finalized later this year.<\/p>\n

The delegation: <\/strong>UAE government officials and Emirati private sector representatives will participate in several events in Tokyo and Osaka, including the Abu Dhabi Investment Forum (ADIF) and Abu Dhabi-Tokyo Business Forum. The delegation will be looking to deepen cooperation with Japan in clean energy, hydrogen, AI, life sciences, and next-generation technologies, the statement said. <\/p>\n

THE BIG STORY ABROAD-<\/p>\n

It\u2019s all about conflicts escalating (and de-escalating) in the global press this morning.<\/strong><\/p>\n

Tensions are flaring on the Indian-Pakistani border<\/strong>, with Delhi mounting targeted aerial<\/a>attacks<\/a> against what it called \u201cterrorist sites\u201d inside Pakistan and the Kashmir province, killing 8 and injuring dozens. The attacks have been framed as a retaliation against deadly terrorist attacks that hit India last month.<\/p>\n

Pakistani military officials said <\/strong>they shot down five Indian planes<\/a><\/strong> in response, and that troops are exchanging fire along the ceasefire line in Kashmir.<\/p>\n

Several airlines, including UAE flag carrier Emirates and Flydubai, have delayed <\/strong>or canceled flights to and from India and Pakistan <\/strong>following the attacks, Gulf News<\/a> reports. <\/p>\n

CLOSER TO HOME- Oman said in a surprise announcement it <\/strong>brokered a ceasefire<\/a><\/strong> last night between <\/strong>Yemen\u2019s Houthis and the US<\/strong>, shortly after US President Trump confirmed strikes on the Houthis will stop in return for an end to attacks on US ships in the Red Sea. The ceasefire apparently blindsided Israel, just hours after waging airstrikes<\/a> that took Yemen\u2019s main airport out of service.<\/p>\n

Trump also hinted at a <\/strong>\u201cvery, very big announcement\u201d<\/a><\/strong> ahead of his scheduled trip to the Middle East next week, stopping short of providing any details but saying it\u2019s \u201creally positive.\u201d<\/p>\n

The teaser came during <\/strong>a tense-but-civil meeting<\/a><\/strong> in the Oval Office with Canadian PM <\/strong>Mark Carney<\/strong>, where Carney assured Canada is \u201cnot for sale,\u201d to which the Donald responded, \u201ctime will tell.\u201d The meeting aimed to bridge differences on tariffs and trade.<\/p>\n

SPEAKING OF TRADE- <\/strong>US Treasury Secretary Scott Bessent is heading to Switzerland this week for the <\/strong>first officially confirmed trade negotiations with China<\/a><\/strong>, sparking hopes of de-escalation between the world\u2019s two largest economies.<\/p>\n

ALSO WORTH READING THIS MORNING-<\/strong><\/p>\n