07 February 2012 18:47 [Source: ICIS news]
LONDON (ICIS)--The European Commission has cleared the acquisition of Spanish chemicals and industrial group Maxam by US-based private equity firm Advent International and some 110 individuals, including Maxam's current management, it said on Tuesday.
The Commission said the deal created a vertical supply relationship between Advent's production of 2-ethylhexanol (2-EH) and Maxam's downstream production of 2-ethyhexyl nitrate (2-EHN). Advent controls Germany-based oxo-alcohols producer OXEA.
However, the Commission’s investigation found that 2-EH producers would continue to have a range of alternative customers and that the merger would “not result in any substantial change in the supply relationship between Advent and Maxam”, it said.
Moreover, the Commission found it unlikely that the transaction would lead to concerns relating to the supply of 2-EH to 2-EHN producers because of the existence of alternative suppliers with sufficient production capacity, as well as increasing imports and "a sufficient degree of buyer power" from 2-EHN customers, among other factors, it said.
According to information on Maxam's website, Advent will acquire a 49.99% stake in the company that was previously held by private equity firms Portobello and Vista Capital.
The remaining 50.01% of the company would be under the control of Maxam's management team under CEO Jose Fernando Sanchez-Junco, the company said without disclosing investment amounts.
Maxam develops, manufactures and commercialises a wide range of products, including chemicals. It also supplies, through a joint venture, cetane number improvers for diesel fuel.
In addition to OXEA, Advent controls HC Starck, a former Bayer business that supplies refractory metals and ceramics to the chemical and other markets, and it has investments in a number of pharmaceuticals, software and financial firms.
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