Brussels, 21/06/2007 (Agence Europe) - On 20 June, the European Commission granted clearance to the proposed acquisition of Wolff Walsrode of Germany by Dow Chemical Corporation of the US. The Commission noted that Dow and Wolff are both active on the markets for cellulose ethers (synthetic plastics made from cellulose). Their product ranges overlap only in methylcellulose (“MC”) and derivatives (“MC&D”), which are commercially the most significant cellulose ethers. MC&D are mainly used in building materials, but they are also used in the production of pharmaceuticals, food and personal care applications. The Commission's examination of the proposed deal focused on the European Economic Area (EEA) market for MC&D, where the combined entity would become a market leader. However, in view of the presence of three significant competitors - Shin-Etsu/Tylose, Hercules/Aqualon and Samsung - and indications of increasing imports and capacity levels, the Commission concluded that the new market leader would continue to face effective competition. The Commission therefore concluded that the operation would not significantly impede effective competition in the EEA or in any substantial part of it. (ol)