Europe approves merger between Reichhold and Polyn, subject to conditions
Staff Writer |
The European Commission has approved under the EU Merger Regulation the merger between chemical producers Reichhold (US) and Polynt (Italy).
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Both produce unsaturated polyester resins, used to make reinforced plastics. The decision is conditional on divestment of Reichhold's Etain plant in France.
Both Reichhold and Polynt are active in the manufacturing of chemicals. Both companies produce and sell unsaturated polyester resins, a critical input for many industries.
These resins are used to make products such as cultured marble and solid surface counter tops, automotive repair putty and other products, such as bowling balls and buttons.
When combined with fiberglass or mineral fillers, the resins are resistant to corrosion and fire and used to manufacture windmill blades, as well as in the construction, marine and land transportation industries.
Following the market investigation, the Commission concluded that the transaction, as notified, raised competition concerns in the market for the production and sale of unsaturated polyester resins.
This is notably in view of the relatively high combined market shares of the merged entity and its extensive network of plants, as compared to its main competitors.
To address the competition concerns identified by the Commission, Reichhold and Polynt offered to divest Reichhold's largest unsaturated polyester resin plant, in Etain, north-east France, together with the plant's customer and product information.
Reichhold and Polynt have proposed Ashland as the buyer of the Etain plant. Ashland has an established presence in the European Economic Area (EEA) market for unsaturated polyester resin.
Reichhold and Polynt can only implement their merger once the Commission has formally assessed and approved the divestiture to Ashland.
The commitments fully address the Commission's competition concerns. ■