Brussels, 03/12/2001 (Agence Europe) - The European Commission has referred the part of the proposed acquisition of the German cellular concrete producer Ytong by the Haniel Group (German-based diversified group) to the German Competition Authority, the Bundeskartellamt. At the same time, the Commission decided that the deal's effect in the Dutch wall building materials sector requires further review and started an in-depth investigation. This approach is similar to the one adopted in October of this year in respect of Haniel's proposed acquisition of the German wall building materials company Fels (see EUROPE of 19 October, p.15).
Haniel is planning to buy up RWK's stake in its subsidiary Ytong. Following the notification of the deal, Germany asked the Commission to refer the examination of that aspect of the deal to Germany in application of Article 9 of the Merger Regulation 4064/89. Article 9 allows for such referrals if a merger threatens to create or strengthen a dominant position as a result of which effective competition would be significantly impeded on a distinct market within a Member State. The Commission's findings in its first-phase investigation are in line with the preliminary analysis made by the German Competition Authority. The Commission believes that the Bundeskartellamt is best placed to assess the competitive impact of the case (it is already investigating the impact of Fels' takeover by Haniel). The German market will be directly affected by the transaction since both companies' are active on the German market. The authority now has four months to take a final decision on the notified Haniel/Ytong transaction. The European Commission has decided to investigate the section of the dossier concerning the impact of the operation on the Dutch market itself - through its indirect stake in the Dutch sand-lime co-operative CVK, Haniel may already have a dominant position on the Dutch market for wall building materials.