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Image header Agence Europe
Europe Daily Bulletin No. 8482
Contents Publication in full By article 27 / 34
GENERAL NEWS / (eu) eu/competition

Go-ahead for Celanese and Degussa joint venture

Brussels, 13/06/2003 (Agence Europe) - The European Commission has granted clearance to a proposed joint venture between German chemical producers Celanese AG and Degussa AG in the market for oxo chemicals (used as chemical intermediates, solvents and plasticizers). The 50/50 joint venture, to be called European Oxo Chemicals (EOC), will produce oxo-alcohols, plasticisers and solvents used as intermediate products for the production of products like solvents, plasticisers, lacquers, fuel additives, vitamins and many others. The Commission was initially concerned about the parties' strong position in several markets but an in-depth analysis showed that competitors (that Germany's BASF, Atofina of France, Sweden's Perstorp, Zaklady of Poland and other producers from eastern Europe or the United States) would be able to keep in check any attempt by the venture to raise prices, especially in view of the spare capacity in the sector.

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