Brussels, 13/04/2005 (Agence Europe) - The Commission has opened an indepth inquiry into the proposed creation of a joint undertaking between Sasol Wax International AG, with a 75% stake, and Total SA, with 25%. After a preliminary examination, it noted major competitive risks given the market shares held by the two firms, as well as overlapping of activities and vertical links existing in the paraffin wax and micro wax sectors. The German company, Sasol Wax International AG, a subsidiary of the South African Sasol Group, is specialised in petroleum waxes and Total is one of the major world companies in the oil sector. The joint venture, which will bring together the activities of both companies in the field of production, marketing and sales of petroleum-based waxes and bitumen additives, will be by far the largest player on these markets in Europe, the Commission notes in a press release. Among petroleum-based waxes, slack wax and bright stock slack wax are produced in refineries as by-products of the oil refining process. They may be used as an important input in many different industries, including candle manufacturing, rubber, packaging, cable, chewing gum and adhesives. The proposed merger would strengthen the companies' position on the market, on which Sasol is already the leader in the European Economic Area and which, according to the Commission, is experiencing capacity problems. The Commission will above all seek to verify whether, as the parties maintain, Chinese imports exert sufficient competitive pressure.