Brussels, 26/03/2013 (Agence Europe) - On 26 March 2013, the European Commission opened an in-depth investigation into the planned acquisition by Nynas AB of Sweden of refinery assets located in Hamburg/Harburg (Germany) and currently owned by Shell Deutschland Oil GmbH, a subsidiary of Anglo-Dutch Shell. The Commission's initial investigation revealed possible competition concerns in the markets for naphthenic base oils, naphthenic process oils and transformer oils (TFO) where the merged entity would have very high market shares in the European Economic Area (EEA). These oils are used for the production of industrial greases, metalworking fluids, adhesives, inks, insoluble sulphur, industrial rubber, fertilisers, de-foamers and additives. The transaction would leave the merged entity as the only producer of naphthenic base oils in the EEA. Base oils are derived from crude oil and can be further tested into process oils used in chemical processes or blended into transformer oils used as insulating material for transformers. The Commission's initial investigation has shown that following the transaction no other competitor would remain to supply naphthenic oils for use in some end applications like for instance industrial rubber, fertilizers and defoamers. With respect to other segments, including greases, metalworking fluids or cold-set inks, and transformer oils the few remaining competitors who import into the EEA may not exercise a sufficient competitive constraint. The Harburg assets covered by the deal include the Harburg base oil manufacturing plant to produce base oil from distillates and certain parts of the refinery which are necessary to produce distillates from crude oil. The remainder of the refinery will be retained by Shell. (FG/transl.fl)