EC approves Perstorp UK caprolactone deal

10 January 2008 16:07  [Source: ICIS news]

PARIS (ICIS news)--The European Commission (EC) on Thursday gave the green light to the takeover of Solvay’s caprolactones business by Perstorp of Sweden.

 

The EC said the takeover, which covers a single caprolactone plant in the UK and was announced on 15 October 2007, would not distort competition within the EU since the Swedish company had no existing caprolactone production facilities.

 

The EU’s competition watchdog said its investigation of the proposed takeover had raised some minor issues relating to Pertorp’s production of polyhydric alcohols, which are used in limited quantities in the production of caprolactones.

 

But it said that this would not result in any anti-competitive effects as Perstorp “would have no ability to restrict its competitors’ access to polyhydric alcohols for caprolactone production since there are several alternative suppliers”.

 

In addition, as polyhydric alcohols are used in a wide variety of products other than caprolactones, even if Perstorp “were to source all of its polyhydric alcohols internally, this would have only a limited effect on other suppliers of polyhydric alcohols”, the EC said. 

By: Chris Jones
+44 20 8652 3214

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