EU Commission clears acquisition of Guadarranque by Indorama
The European Commission has approved under the EU Merger Regulation the acquisition of Guadarranque Polyester S.L.U. of Spain by Indorama Netherlands B.V. of the Netherlands, ultimately controlled by Canopus International Ltd. of Indonesia
Both, Indorama and Guadarranque are active in the production of plastic products made of polyethylene terephthalate (known as PET). The Commission concluded that the proposed acquisition would raise no competition concerns because of the companies’ moderate market positions and the presence of strong competitors on the PET market. Similarly, the Commission concluded that no concern would arise regarding Guadarranque’s production of purified isophthalic acid (PIA), an input for PET production. Sufficient sources of PIA will remain available to competing PET producers and the merged entity will have neither the ability nor the incentive to restrict access to PIA. The transaction was examined under the normal merger review procedure.