European Commission to probe Ineos/Solvay joint venture

PRW

Published: November 6, 2013 3:50 pm ET

Related to this story

Topics Mergers & Acquisitions, Materials Suppliers, Government & Legislation
Companies & Associations Solvay SA

The European Commission (EC) has opened what it called an "in-depth investigation" into the proposed merger of Ineos' and Solvay's European chlorvinyls operations.

In May the two companies announced plans to create a 50:50 joint venture which the pair said would become one of the top three producers of chlorvinyls in the world.

The Commission said a preliminary investigation had "expressed competition concerns" in the market of suspension PVC used in pipe manufacturing, molded fittings, window and door frames, and bleach, where both Ineos and Solvay were key players.

The decision to open an in-depth inquiry did not prejudge the result of the investigation, said the Commission, which now has 90 working days — until March 21 — to arrive at a final decision on whether the joint venture would reduce effective competition in the European Economic Area (EEA).

The PVC market in the EEA is worth around 3.2 billion euros, the Commission said.

Joaquín Almunia, Commission vice president in charge of competition policy, said: "The proposed merger would remove a key competitor in the markets for PVC and bleach.

"The Commission needs to make sure that competition is preserved for both products and ultimately prevent harm to European consumers."

In a statement, the Commission said it had concerns that "the remaining competitors in both markets may not be able to exert sufficiently strong constraints on the behavior of the joint venture in the market.

"The removal of the competitive constraint that Ineos and Solvay currently exert on each other may lead to a reduction of choice for customers and potentially to an increase in prices for the products concerned."

Commitments offered by both companies to address these concerns "failed to provide a sufficiently clear-cut solution to eliminate the Commission's concerns."

The Commission said it would investigate in-depth the effects of the proposed deal "to determine whether its initial concerns are confirmed or not."


Comments

European Commission to probe Ineos/Solvay joint venture

PRW

Published: November 6, 2013 3:50 pm ET

Post Your Comments


Back to story


More stories

Image

Resin market has consolidated as it matured

November 28, 2014 6:00 am ET

The classic quantity vs. quality debate has played out in the ranks of North American resin makers in the last 25 years.    More

Image

Sipa buys Automa's PET bottle machinery business

November 28, 2014 10:02 am ET

Sipa SpA has acquired the injection-stretch-blow molding (ISBM) equipment business of Automa SpA. No transaction price was disclosed in the...    More

Image

'Evolution, not revolution' on the horizon for A. Schulman

November 28, 2014 6:00 am ET

Bernard Rzepka's schedule for his first year as CEO of compounding leader A. Schulman Inc. does not include reinventing the wheel.    More

Image

Penn Color plans $10 million expansion

November 28, 2014 6:00 am ET

Penn Color Inc. will break ground late next year on a 100,000-square-foot expansion of its manufacturing site in Hatfield, Pa.    More

New liquid colorants for PET packaging released

November 28, 2014 6:00 am ET

PolyOne Corp. has launched a line of new liquid colorants for PET packaging in personal care and cosmetic products.    More

Market Reports

Plastics Caps & Closures Market Report

The annual recap of top trends and future outlook for the plastics caps & closures market features interviews with industry thought leaders and Bill Wood’s economic forecast of trends in growing end markets. You will also gain insight on trends in caps design, materials, machinery, molds & tooling and reviews of mergers & acquisitions.

Learn more

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 billion plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our analysts provide insight on business trends, foreign investment, top end markets and plastics processing activity. The report also provides important data on exports, production, employment and value of plastics products manufactured.

Learn more

Upcoming Plastics News Events

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

October 27, 2015 - October 29, 2015Plastics Financial Summit - New York - 2015

More Events