On Friday 18 January, the European Commission conditionally approved BASF’s proposed acquisition of Solvay's nylon business.
The institution's decision echoes the in-depth investigation it opened last June into this transaction between Solvay (Belgium) and BASF (Germany), which is dominant in the market segment for a specific type of nylon, 'nylon 6.6' (see EUROPE 12049).
Following its investigation, the Commission considered that the proposed acquisition, as initially presented, would have reduced the number of suppliers and increased prices for certain nylon-related products in the European Economic Area. It also found that competitors of the future entity could be restricted in their access to certain substances.
In order to address the Commission's concerns, the two companies then proposed to divest Solvay's existing nylon-related substance production facilities, to create an adipic acid production joint venture between the future entity and the purchaser of the above-mentioned facilities and to conclude long-term supply agreements for adiponitrile, also a nylon-related product.
Subject to compliance with the above commitments, the Commission considered that the operation complied with EU competition law rules. (Original version in French by Lucas Tripoteau)