On Tuesday 5 April, the European Commission opened an in-depth investigation into the proposed acquisition of Pfleiderer Polska by Kronospan. The Commission is concerned that the merger will reduce competition in the market for the supply of various types of woodboard panels in Poland and neighbouring countries.
Kronospan (Austria) and Pfleiderer Polska (Poland) are leading suppliers of wood-based panels in Europe.
The initial investigation revealed a number of concerns related to the parties’ strong market position for the supply of certain types of wood-based panels.
At this stage, the Commission considers: - that the transaction is likely to lead to higher prices and less choice for construction and industrial customers as well as for end-customers of particleboard, fibreboard and components (the parties hold high combined market shares in several catchment areas around their Eastern European production plants, where, after the transaction, there would be few, if any, credible alternative suppliers); - due to the association with Pfleiderer Polska, Kronospan could apply input foreclosure strategies in the particleboard, fibreboard and component markets (Original version in French by Lionel Changeur)