Brussels, 31/08/2007 (Agence Europe) - On Thursday 30 August, the European Commission approved the creation of a joint venture by BP plc and Associated British Foods Plc ("ABF"), both of the United Kingdom. Given the limited overlap of the parties' activities, the Commission found that the proposed transaction is not likely to affect competition in the European Economic Area (EEA) or any substantial part of it.
The joint venture will design, construct and operate a bio-ethanol plant in the UK which from 2009/2010 will produce and market bio-ethanol primarily for use as a blending material for bio-fuels.
The Commission's examination of the transaction showed that the horizontal overlaps between the relevant activities of the parent companies and the JV are minimal and limited to the markets for the production and supply of bio-ethanol and production of non-grain food ingredients which is a co-product of bio-ethanol. Vertical relationships between the parties where one party would have a market share of more than 25% are limited to the markets for retail and non-retail sales of bio-fuels in some member states, in Germany and Austria in particular. However, the parties' shares on all relevant markets are below a level indicating market power and the additional market share that results from this transaction is very small. (ol)