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NEWSLETTER 2011
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As for INEOS, it is a conglomerate that produces a range of chemicals
including petrochemicals, specialty chemicals and oil products.
Transaction
BASF and INEOS decided to form a joint venture in order to combine
their existing styrene monomer, polystyrene and ABS businesses, together
with certain minor related products.
The ABS, principal component of the transaction, is an extremely
important chemical product because it is used in a variety of applications
including, for instance, refrigerator door caps, vacuumcleaner components,
washing machine panels, computer keyboards and housings, dashboard
components and steering wheel covers.
Relevant Market
The Commission, by taking into consideration the chemical product
ABS, principal component of the proposed transaction, determined that
the relevant product market was the market for ABS.
Commission’s Investigation
The Commission carried out an investigation on the proposed
transaction upon its notification on April 7, 2011. However, the
Commission concluded that the proposed transaction will create a very
strong player in the market for ABS where concentration is already high.
Thus, the Commission asked the Parties to submit commitments
pursuant to the Notice with a view to remedy to its concerns. As a matter of
fact, the last sentence of Article 4 of the Notice states, by making a reference
to Article 2(4) of the Regulation No. 139/2004
5
4
, that commitments may
also be submitted for the formation of a joint venture.
Commitments Submitted by the Parties
BASF and INEOS decided, in order to remedy the Commission’s
concerns, to submit structural commitments which are considered as
4
See fn. 2.