Brussels, 20/01/2009 (Agence Europe) - On Friday 16 January, the European Commission cleared the proposed acquisition of Abieta Chemie GmbH of Germany by the Arizona Chemical group of the US.
The concentration does not meet the turnover thresholds of the EU Merger Regulation but has been dealt with by the Commission following a referral requested by the parties, agreed by the member states concerned.
The parties' activities overlap horizontally in the markets for the manufacturing and sale of rosin emulsifiers for emulsion polymerisation and grip enhancing resins.
As regards emulsifiers, where the parties' combined market share is significant, the Commission's investigation revealed a significant excess in production capacity in the market. The Commission's investigation also pointed to strong customers' bargaining power and sufficient alternative supply sources for customers.
As regards grip enhancing resins, the proposed transaction would not significantly modify the structure of the relevant markets as the increment in market shares is negligible and a number of credible competitors would continue to exercise a competitive constraint on the merged entity.
In a press release, the Commission noted that the proposed transaction would give rise to a vertical relationship because Arizona is active in the rosin market, which is upstream of the emulsifiers and the grip enhancing resin markets. However, it concluded that the transaction would not involve any risk of closing off supplies in the EEA, because of Arizona's low market share in the rosin market and Abieta's insignificant position as a purchaser of rosin. (O.L./transl.rh)