Diepgaan EU-onderzoek naar fusie tussen Sasol Wax en Total (markt voor wax en bitumen) (en)

The European Commission has opened a detailed investigation under the EU Merger Regulation into the planned creation of a full-function joint venture between German company Sasol Wax International AG and the French company Total S.A. The joint venture will be active in the field of petroleum- based waxes and bitumen additives. The Commission's initial market investigation has found that the proposed transaction could create significant competition concerns given the strong positions, horizontal overlaps and vertical links between the two companies' paraffin waxes and micro waxes activities. The decision to open an in-depth inquiry does not prejudge the final result of the investigation. The Commission now has approximately four months to take a final decision on whether the concentration would significantly impede effective competition within the Single Market.

"This joint venture will be by far the largest player on these markets in Europe", commented Competition Commissioner Neelie Kroes. "It is therefore crucial that the Commission carefully analyses the available information to guard against any significant impediment to effective competition on these wax markets to the detriment of customers".

Sasol Wax International AG is a specialised company active in the field of petroleum-based waxes, which belongs to the South-African Sasol Group, an integrated oil and gas company with substantial chemical interests. Total France S.A. is part of the Total group, one of the largest oil and gas companies world-wide.

The proposed operation consists in the creation of a full function joint venture, which would be active in the production, marketing and sale of petroleum wax products and bitumen additives and would combine Sasol's and Total's activities in this area.

Among petroleum based waxes, slack wax and bright stock slack wax are produced in refineries as by-products of the oil refining process. They may be used captively, sold directly to the construction board industry or, which is of particular relevance in this case, further refined into paraffin waxes or micro waxes. The latter products are used as an important input in many different industries, including candle manufacturing, rubber, packaging, cable, chewing gum and adhesives.

Sasol is already the clear market leader for paraffin waxes in the European Economic Area (EEA) and the creation of the joint venture, which would integrate Total's wax activities with those of Sasol, would strengthen this position significantly. Total would also supply the joint venture with slack wax.

The Commission's investigation have shown that the European markets for paraffin waxes and micro waxes are capacity constrained, and that such constraints may increase through the transaction. The investigation has not allowed the Commission to confirm the parties' contention as to the significance of the competitive constraint exerted by Chinese imports of paraffin waxes.

On the basis of these concerns, the Commission has decided to open a second phase investigation in order to carry out an in-depth assessment of the effects of the transaction on the European markets for paraffin waxes and micro waxes. It now has four months to investigate whether the proposed acquisition will significantly impede effective competition in the EEA.