The European Commission has approved, under the EU Merger Regulation, the acquisition of sole control of the Resins & Functional Materials businesses of Koninklijke DSM N.V. of the Netherlands by Covestro AG of Germany.
The acquired businesses are active in the supply of coating resins and crosslinkers. Coating resins are used to produce coatings that provide a film with decorative, protective or other functional effects on a surface. Crosslinkers serve as hardeners of coatings.
Covestro is also active in the supply of coating resins and crosslinkers, as well as in the production of various chemicals used for the production of coating resins and crosslinkers. The proposed transaction results in a number of horizontal overlaps in coating resins and crosslinkers as well as of vertical overlaps between the manufacture of coating resins and crosslinkers and the production of various chemicals used for this manufacture.
In each of the markets under consideration, the combined market shares of the companies are limited and several other well established players are present. Therefore the Commission concluded that the proposed transaction would raise no competition concerns. The transaction was examined under the normal merger review procedure.