The European Commission has approved, under the EU Merger Regulation, the acquisition of sole control of PERSTORP HOLDING AB (publ.) (‘Perstorp’) of Sweden by PETRONAS Chemicals Group Berhad (‘PCG’) of Malaysia.
Perstorp is a chemical provider active in the resins, coatings, engineered fluids and animal nutrition industries in Asia, Europe, and North America.
PCG is a publicly listed company active primarily in manufacturing and selling a diversified range of petrochemical products. The proposed transaction results in horizontal overlaps in the manufacture and supply of two chemical products (2-EHA and I-BAL) as well as in a vertical link between two other chemical products: N-BAL (upstream product) and TMP (downstream product).
The Commission concluded that the proposed acquisition would raise no competition concerns, as the horizontally affected markets will remain sufficiently competitive after the transaction. In addition, with regard to the vertically affected markets, the merged entity would not have the ability to engage in foreclosure practices. The transaction was examined under the normal merger review procedure.