Brussels, 26/09/2005 (Agence Europe) - The Commission has opened an in-depth investigation into the operation to acquire the activities of the American company JM Huber in the field of on-site production of precipitated calcium carbonate (PCC) by the Swiss company Omya. "The markets which supply the European paper industry are complex and concentrated", said Commissioner Neelie Kroes in a press release, adding that "if competition was to fall off in this sector, this would lead to an increase in costs for a large range of European businesses". By request of the French, Finnish and Swedish authorities to bring the affair before the Commission, the institution has noted that there is a risk to competition. Amongst other things, it hopes to be assured that the consequences of the possible creation of a dominant position for Omya, or even a collective domination by players on the carbonate markets supplying the European paper industry. Omya, which sells a range of industrial minerals to the paper industry- particularly synthetic PCC and natural calcium carbonate in the form of ground marble (GCC), a product for which it is the principal supplier in the EEA- is hoping to buy 12 on-site PCC production installations belonging to JM Huber. Six of these sites are situated within the EEA and the others in the United States, Canada, Brazil and Russia. Omya already owns four on-site PCC production units, two of which are in the EEA, the Commission notes, observing that the markets are concentrated, with high barriers to entry. Furthermore, PCC production which is not fully consumed by the paper factory in which the unit is set up can be transported hundreds of kilometres and sold to other clients. The Commission's analysis will now focus on the whole of the carbonate market feeding into the paper industry, rather than just to on-site products.