Mergers: Commission clears acquisition of certain INEOS chlorovinyls businesses by ICIG and approves ICIG as buyer of divested assets linked to approval of INEOS / Solvay joint venture
The European Commission has approved under the EU Merger Regulation the proposed acquisition of a group of chlorovinyls businesses belonging to the chemical group INEOS by International Chemical Investors Group ("ICIG"). In parallel with today's clearance decision, the Commission has also approved ICIG as suitable purchaser for the divestitures offered by INEOS and Solvay to obtain the clearance of their joint venture in the S-PVC market...
The INEOS' chlorovinyls businesses to be acquired by ICIG include the production and supply of suspension polyvinyl chloride ("S-PVC"), sodium hypochlorite ("bleach"), potassium hydroxide ("KOH") and other related products. The transaction includes the production facilities owned and operated by INEOS in Belgium, France, Germany, the Netherlands and the UK, which INEOS committed to divest in order to obtain the Commission's clearance of the joint venture between INEOS and Solvay of Belgium ("INOVYN").
The companies' activities mainly overlap in the production of KOH, which is used for the manufacturing of de-icing liquids, soaps, biodiesel and fertilisers. The Commission concluded that the transaction would lead to less concentration in the market for KOH as a result of the transfer of part of the KOH business previously operated by INEOS, the market leader, to an independent competitor, ICIG. Moreover, a number of other players would remain active in the market.
The Commission has therefore cleared the proposed transaction under merger control rules.
The companies' activities mainly overlap in the production of KOH, which is used for the manufacturing of de-icing liquids, soaps, biodiesel and fertilisers. The Commission concluded that the transaction would lead to less concentration in the market for KOH as a result of the transfer of part of the KOH business previously operated by INEOS, the market leader, to an independent competitor, ICIG. Moreover, a number of other players would remain active in the market.
The Commission has therefore cleared the proposed transaction under merger control rules.
