29/05/2006 (Agence Europe) - The European Commission has cleared the planned acquisition of Degussa's Construction Chemicals business (“DCC”) by BASF AG (“BASF”). BASF is active in chemicals, plastics, performance products, agricultural products and nutrition, and oil and gas. DCC produces chemicals and formulations for customers in the construction industry. With respect to the present deal, both BASF and DCC produce performance polymers that feed as raw chemicals into concrete admixture products. DCC is at the same time a producer of concrete admixtures. The merger would enable BASF to vertically integrate into the supply chain for construction chemicals. The Commission's examination of the deal showed that the horizontal overlaps between both parties' activities lead to a combined market share that raises no competition concerns on the market for performance polymers since the combined firm would continue to face several strong, effective competitors.