LONDON (CNI)--The European Commission (EC) on Tuesday approved plans by US oil and chemical services company Koch Industries to take over specialist polyester products provider KoSa, a 50:50 joint venture between Koch and Mexican firm Imasab.
In approving the deal, the EC said it does not pose any competition concerns given that the activities of Koch and KoSa do not overlap.
KoSa is active in speciality polyester products and other products as part of five global businesses: packaging resins, textile fibres, technical fibres, intermediates and polymers.
The EC said it also examined the vertical relationship between Koch and KoSa, as Koch supplies KoSa with paraxylene (PX) feedstock. However, it concluded that the transaction would not lead to a foreclosure effect or other vertical concern.
KoSa was formerly part of the Trevira division of Germany's Hoechst. In 1998 it was set up as a joint venture between Koch and Imasab.