Brussels, 30/03/2000 (Agence Europe) - The European Commission authorised, on condition of certain undertakings by the parties, the forming of a joint venture for the production of polypropylene and polyethylene between the Dutch company Shell petroleum and the German company BASF. The Commission feared that the merger of the two main actors in the market would lead to an abuse of their dominant position. However, thanks to the companies' collaboration, it obtained undertaking that satisfy it as of the first stages of the procedure.
Thus Shell and BASF undertake to: i) in the polypropylene resin sector (PP) to cede three companies with a total annual production of at least 600kT. The market share of the joint venture is so brought to below 30%, ii) for the polypropylene compounds: to sell a 130kT capacity installation representing close to 10% of western European production. The market share of the joint venture then falls to below 35%, iii) as for PP and catalyst production: the parties cede their activities linked to BASF's Novolen technology. The Commission feared the effects of the combination of this technology with Shell's Spheripol technology which has been a world leader for 15 years, iv) for patents concerning latest metallocene catalyst technologies: the parties will grant sub-licences of the BASF/Targor patent to third parties wanting to obtain a direct licence, and undertake not to claim their rights with regard to third parties using these licences if they obtain the licensed technology from other sources.