EC approves Dow purchase of Wolff Walsrode

20 June 2007 15:53  [Source: ICIS news]

PARIS (ICIS news)--The European Commission (EC) said on Wednesday it had given Dow Chemical Corporation the green light to buy Wolff Walsrode from Bayer AG.

 

The Commission said the transaction would not significantly impede effective competition in the European Economic Area (EEA) or any substantial part of it.

 

Both Dow and Wolff Walsrode manufacture cellulose ethers, but their product ranges overlap only on the methylcellulose ("MC") and derivatives ("MC&D") markets.

 

MC&D, commercially the most significant cellulose ethers, are mainly used in building materials and in the production of pharmaceuticals, food and personal care applications.

 

The EC concluded that since, in addition to Dow and Wolff, the MC&D market boasts three significant players, Shin-Etsu/Tylose, Hercules/Aqualon and Samsung, there was no danger of the merger threatening the market’s competitiveness.

 

It added that increasing levels of imports also suggested that the new market leader would continue to face effective competition.

 

Wolff Walsrode is a German manufacturer of cellulosics (synthetic plastics made from cellulose), and fibrous and plastic casings.

 

Dow Chemical Corporation is the parent company of the Dow group of companies, which specialises in plastics, chemicals, agricultural sciences, hydrocarbon and energy products and services.

By: Philippa Jones
+44 20 8652 3214

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