EC clears acquisition of Huntsman by Hexion, subject to conditions, after a Phase I investigation
The European Commission has approved at Phase I, subject to remedies, the proposed acquisition of Huntsman Corporation by Hexion Specialty Chemicals Inc., both US-based chemical manufacturers with products portfolios that include epoxy resins. The activities of Hexion and Huntsman overlap at all three levels of the epoxy value chain (production of inputs, components and formulated systems) and lead to a number of horizontally and vertically affected markets.
The Commission found that the high market share in Bis-F liquid epoxy resins would not lead to competition concerns because of demand-side substitution and spare capacity on the world market. On the other hand, the Commission's market investigation showed that the proposed transaction, as initially notified, raised horizontal competition concerns with respect to certain specialty resins and formulated systems in which the merged entity would hold very high market shares both worldwide and in the EEA. The Commission also identified vertical concerns regarding certain specialty resins and curing agents used for aerospace and wind energy applications.
To remove the Commission's concerns, Hexion offered to divest assets in Germany and the US. The Commission concluded that the proposed remedies were viable and that they addressed the competition concerns
A CRA team including Gary Roberts (Washington DC), Pablo Florian (London) and Yianis Sarafidis (Washington DC) advised Morgan Lewis and Hexion on the case.
Print this page