Kroes opent diepte-onderzoek naar voorgenomen acquisitie Duitse ethyleenoxideproducent Dormagen door Britse Ineos (en)

The European Commission has opened a detailed investigation under the EU Merger Regulation into the planned acquisition by the UK company Ineos of the ethylene oxide and ethylene glycol businesses of BP at Dormagen (Germany).

The Commission's preliminary market investigation has found that the proposed transaction could create significant competition concerns given the strong market position that Ineos would achieve on the ethylene oxide market. The Commission now has 90 working days (until 14th July) to take a final decision on whether the concentration would significantly impede effective competition within the European Economic Area (EEA) or a significant part of it. The decision to open an in-depth inquiry does not prejudge the final result of the investigation.

"This transaction would make Ineos by far the largest supplier of ethylene oxide to the merchant market in the EEA", commented Competition Commissioner Neelie Kroes i. "The Commission has to analyse the consequences of this transaction thoroughly to make sure that it does not create any significant impediment to effective competition".

Ineos is a UK based company active worldwide in the production, distribution, sales and marketing of intermediate and speciality chemicals. Prior to this transaction, Ineos acquired Innovene from British Petroleum, which manufactures a range of petrochemicals, including olefins and their derivatives and a range of refinery products.

The ethylene oxide and ethylene glycols businesses consist of a production plant located at Dormagen (Germany) which is currently controlled by British Petroleum and is active in the manufacture of ethylene oxide and ethylene glycols.

The transaction has its main effects on the ethylene oxide market. Ethylene oxide is used for the production of "ethylene glycols", which are used for the production of polyester for the textile and film industries, antifreeze and plastic (polyethylene terephthalate - PET) bottles, and for the production of a number of other "ethylene oxide derivatives" used in a wide range of industries such as detergents, cosmetics, textile or paints.

After the planned transaction, Ineos would have a strong position in the supply of ethylene oxide. The anticompetitive effect may be reinforced by the high utilisation rate of ethylene oxide production capacity.

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.