Markt voor mineralen in de papier-industrie: Europese Commissie start diepgravend onderzoek naar voorgenomen fusie tussen Omya (Zwitserland) en J.M. Huber (VS) (en)

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The European Commission has opened an in-depth investigation under the EU Merger Regulation of Swiss-based Omya's proposed acquisition of J.M. Huber's On-site Precipitated Calcium Carbonate ("PCC") Business. J.M. Huber, headquartered in the United States, is selling its twelve on-site PCC production facilities which were purpose built on paper mill sites to provide a ready supply of minerals used in paper production. Six of these plants are in the EEA, the rest are in the United States, Canada, Brazil and Russia. This case was originally referred to the Commission by the Finnish Competition Authority who considered the deal to have a European dimension. The Commission will investigate the markets for all carbonates supplied to the paper industry and not just those produced on-site. The analysis will cover the markets for paper filling and paper coating applications. The opening of this in-depth investigation does not in any way prejudge the final outcome. The Commission now has 90 working days (until 26th January 2006) to take a final decision on whether the concentration would significantly impede effective competition within the European Economic Area or a significant part of it.

"The markets supplying the European paper industry are complex and concentrated. Were competition to be reduced in this sector, it would result in increased costs for a wide range of European businesses. We therefore need to assess this transaction in detail so as to ensure that the supply of the minerals essential to the paper industry remains competitive", commented Competition Commissioner Neelie Kroes.

The case was referred to the Commission by the Finnish Competition Authority under Article 22 (1) of the Merger Regulation and the Austrian, French and Swedish competition authorities also joined the referral, under Article 22(2) of the Regulation. The Commission agreed to examine the case and began its initial investigation on 5 August 2005.

Omya is a family-owned company that sells a range of industrial minerals to the paper industry including the synthetic PCC and the natural ground marble calcium carbonate ("GCC"). Industrial minerals have a variety of uses in the €72 billion EEA paper making industry. They act as filling agents which reduce the need for tree pulp, and as coating agents giving the finished product the right colour, desired opacity and receptivity to printing.

J.M. Huber also supplies minerals to the paper industry and is intending to sell off all of its on-site PCC production plants to Omya, six of which are in the EEA. Most of Omya's mineral production is transported to its customers but some, like PCC, is made on-site at the customer's paper mill. Omya already has four on-site PCC production plants, of which two are in the EEA.

The Commission's initial seven week investigation indicates that not only are the markets concentrated with high barriers to entry, but also that some customers use PCC and GCC interchangeably and Omya is already the number one supplier of GCC to the EEA's paper industry. Furthermore it appears that not all on-site production is always consumed by the host paper mill - some of it is sold and transported to other paper mills many hundreds of kilometres away.

The Commission takes the view that there is a serious risk that effective competition will be impaired in these concentrated and complex markets, and that a closer analysis is therefore necessary. This will focus on the possible creation of a dominant position or even of collective dominance amongst the players in the carbonates markets supplying the European paper industry.