IP/06/683
Brussels, 24 May 2006
Mergers: Commission approves acquisition of Degussa’s Construction Chemicals business by BASF The European Commission has cleared under the EU Merger Regulation the proposed acquisition of Degussa’s Construction Chemicals business (“DCC”) by BASF AG (“BASF”). After examining the operation, the Commission concluded that the transaction would not significantly impede effective competition in the EEA or any substantial part of it .
BASF is active in chemicals, plastics, performance products, agricultural products and nutrition, and oil and gas. DCC produces chemicals and formulations for customers in the construction industry. With respect to the present deal, both BASF and DCC produce performance polymers that feed as raw chemicals into concrete admixture products. DCC is at the same time a producer of concrete admixtures. The merger would enable BASF to vertically integrate into the supply chain for construction chemicals.
The Commission’s examination of the deal showed that the horizontal overlaps between both parties’ activities lead to a combined market share that raised no competition concerns on the market for performance polymers since the combined firm would continue to face several strong, effective competitors. With respect to the vertical integration, the Commission also studied the concrete admixture business of DCC and concluded that customers of such products would continue to have sufficient alternative choice and competing suppliers. Further information on the case will be available at:
http://ec.europa.eu/competition/mergers/cases/index/m83.html#m_4177
