The EU has launched an in-depth investigation into Ineos’s planned take over of Hydro Polymers’ PVC business, now renamed Kerling, as part of the competition clearance process.
The focus of the study, which has a 90-day timeframe, will be the UK market for S-Resin but it will also look at the Swedish and Norwegian markets as well as the impact on compounds and rigid film.
Competition Commissioner Neelie Kroes said: “After this transaction, Ineos would become by far the largest supplier of S-PVC to the UK merchant market and the only producer in the UK.”
The decision to initiate the review stems from the Commission’s belief that the PVC market is less than EU wide. “Should the relevant markets be national then following the transaction Ineos would have a strong position in the production and supply of S-PVC in various member states, in particular in the UK, Norway and Sweden,” the Commission statement says,
Ineos Chlor Vinyls ceo Chris Tane described the decision as “disappointing” but said the company remained confident that it would be able to supply the necessary information to ensure completion of the take-over.
