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Commission approves acquisition of BPB by Compagnie de Saint-Gobain

The proposed acquisition of British Plaster Board (BPB) by Saint-Gobain (SG) was unconditionally approved by the EU Commission in Phase I. BPB and SG are both active in the production of construction materials (BPB produces plaster-based products but is also active in foam insulation products, SG produces glass wool insulation products and suspended ceilings but is also active in the distribution of construction materials). The major focus of the Commission investigation was on the vertical aspects of the transaction - i.e. the combination of BPB plaster-based products and SG's distribution arm - but bundling and horizontal effects were also considered. CRA international and Professor Neven provided economic advice to Saint-Gobain throughout the investigation. CRA International submitted a "vertical arithmetic" analysis to the Commission, exploring the post-merger incentives of BPB/SG to limit or reduce sales of BPB products to rival distribution networks.

See our Competition Memo on this issue.

See Commission Press Release

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