Brussels, 30/01/2008 (Agence Europe) - On Wednesday 30 January, the European Commission approved the proposed acquisition of Kerling, the polymer division of the Norwegian company Norsk Hydro Group, by the UK-based company Ineos. Both companies are active, inter alia, in the production of PVC.
In September 2007, after a first phase investigation, the Commission concluded that the notified operation raised serious doubts as to its compatibility with the Single Market and with the European economic Area (EEA) Agreement and decided to open an in-depth enquiry. These concerns related, in particular, to the impact that the transaction could have had on the commodity Suspension PVC market (S PVC) in the UK, Norway and Sweden, as the Commission believed the geographic scope of the S PVC market might be national. During the in-depth investigation, the Commission carefully examined the above mentioned markets and concluded that their geographical dimension was wider than national and comprised at least North Western Europe. The investigation showed that commodity PVC producers located in continental North Western Europe exert sufficient competitive pressure in the UK, Norway and Sweden and constitute a credible alternative source of supply for the customers in these areas. The Commission also investigated the impact of the concentration in other markets, including the markets for caustic soda and PVC compounds and concluded that the proposed transaction was not likely to give rise to any competition concerns in these markets. The Commission concluded, therefore, that the proposed operation would not significantly impede effective competition in the European Economic Area (EEA) or in a substantial part of it. (O.L.)