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Image header Agence Europe
Europe Daily Bulletin No. 9706
Contents Publication in full By article 22 / 33
GENERAL NEWS / (eu) eu/competition

Commission approves three mergers

Brussels, 17/07/2008 (Agence Europe) - On Wednesday 16 July 2008, the European Commission authorised three merger projects after separately assessing their possible impact on competition in the Union. Kirchhoff of Germany will therefore be taken over by the Austrian Strabag Group. Both parties are active in road construction and related products in Germany, but in view of the parties' low market shares in these markets the Commission concluded that the transaction would not significantly impede effective competition. The Commission examined the proposed acquisition of Abitec of the UK by Danisco of Denmark by focusing on the combined production overlap for synthetic emulsifiers used in foodstuffs. DISMO and DATEM have combined market shares of about 40%. However, the Commission's market investigation showed that the other suppliers have ample spare capacity for the production to tackle any uncompetitive price rise caused by the new company, thus limiting the risk of barriers to free competition following the concentration. The Commission has also cleared the proposed acquisition of ConvaTec of the US by Nordic Capital of Jersey, the Channel Islands. The decision is conditional upon the commitment by Nordic Capital to divest its entire wound care business as well as its ophthalmic needles business both located at the Redditch site in the United Kingdom. This sell-off will resolve the problem of ConvaTec business overlaps in advanced wound care products, ostomy products and products for acute faecal incontinence. (C.D./transl.rh)

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