Kroes geeft toestemming tot acquisitie folie-producent Solvay door Renolit onder bepaalde voorwaarden (en)

The European Commission has cleared under the EU Merger Regulation the proposed acquisition of the industrial foil business of the Belgian company Solvay ("IF Solvay") by the German company Renolit. The decision is subject to a number of conditions intended to safeguard competition in the flexible technical PVC film market where the proposed transaction raises competition concerns. To remedy these concerns, Renolit has committed to divest two production plants and a number of other assets.

Effective competition in this foils sector is important because of the wide range of applications of these products by a large number of customers. A sufficient number of competing suppliers must remain on the market to supply high quality industrial foil at a competitive price.

The operation as initially notified to the Commission raised serious competition concerns in the European Economic Area (EEA) market for flexible technical films made of PVC. The proposed concentration would bring together the two leading players in this industry, resulting in a very high share in the market for flexible technical PVC films, which remains highly fragmented. Competitors have therefore little competitive pressure in a market characterised by high entry barriers and limited imports from outside Europe.

In order to remove the competition concerns, Renolit offered to divest Solvay's two main production plants for flexible technical PVC films, namely the Liancourt plant in France and the relevant part of the Enkhuizen plant in the Netherlands. As a result of the commitments the combined market share of the parties on the EEA market for flexible technical PVC films will be substantially reduced, and give other players the opportunity to enter or expand in the market.