Abu Dhabi National Oil Company (ADNOC) is close to securing European Union (EU) approval for its €14.7 billion ($17 billion) (Bn) acquisition of German chemicals producer Covestro, sources familiar with the matter told Reuters.

The European Commission, which is reviewing the deal amid concerns over potential state subsidies, is expected to request minor adjustments to the remedies ADNOC proposed earlier this month before formally approving the transaction. The acquisition marks ADNOC’s largest-ever purchase.

To address these concerns, ADNOC has proposed several remedies, including amending its articles of association to address an unlimited state guarantee and pledging to keep Covestro’s intellectual property within Europe. The EU regulator is expected to request minor adjustments to these proposals before granting formal approval.

Following the news, Covestro’s shares rose 2.4% in late trading, outperforming the STOXX Europe 600 chemicals index. ADNOC has stated that it offered a robust and proportionate package of remedies and remains confident of securing timely clearance for the transaction.

The European Commission, which temporarily paused its review last month pending additional data from ADNOC, is now expected to resume the process after receiving all requested information.

ADNOC has formed key Liquefied Natural Gas (LNG) partnerships with Germany to strengthen energy security. It signed a three-year supply deal with SEFE for 0.7 million ton (mmt) from Das Island and a 15-year contract with EnBW for 0.6 million ton per year (t/y) from the Ruwais project, starting in 2028. In 2022, ADNOC made its first LNG delivery to Germany via the Brunsbüttel terminal, marking a key step in diversifying supply routes.