European Commission to probe Ineos/Solvay joint venture

PRW

Published: November 6, 2013 3:50 pm ET

Related to this story

Topics Mergers & Acquisitions, Government & Legislation, Materials Suppliers
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

Deal puts Convergence Packaging under Comar's umbrella

October 24, 2014 2:00 pm ET

Convergence Packaging Holdings LLC, itself a product of mergers, now is joining together with Comar LLC.    More

Image

Akro-Plastic buying German subsidiary from Metabolix

October 24, 2014 3:32 pm ET

Akro-Plastic GmbH, a Niederzissen, Germany-based plastic compounder, has purchased the assets of Metabolix Inc.'s subsidiary in Germany.    More

Image

BASF pre-tax earnings rise, but will miss financial targets for 2015

October 24, 2014 10:16 am ET

BASF SE has raised its expectations for pre-tax earnings in 2014 but warned that it would not hit its financial targets for next year.    More

Image

Sabic, Shell cancel expansion for SADAF joint venture in Saudi Arabia

October 24, 2014 9:19 am ET

Saudi Basic Industries Corp. and Royal Dutch Shell have cancelled plans to expand an existing petrochemical joint venture in Saudi Arabia following...    More

Image

Sadara CEO says Middle East now has 20 percent of global ethylene capacity

October 24, 2014 9:33 am ET

Sadara CEO Ziad Al-Labban claims that the Middle East's ethylene capacity is now 20 percent of global production.    More

Market Reports

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 million dollar 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

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

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

More Events