The European Commission has approved, under the EU Merger Regulation, the proposed acquisition of DuPont’s Mobility and Materials Business by Celanese.
Following the transaction, the combined entity would become the largest producer of thermoplastic copolyester (‘TPC’) in the European Economic Area and globally, with only a few alternative suppliers remaining. To address the Commission’s competition concerns, Celanese offered to divest its global TPC business, including its production facility in Ferrara (Italy), and the Pibiflex and Riteflex TPC’s brands.
The commitments consist of the divestiture of a stand-alone business, which fully removes the overlap between the parties’ activities. Following the market test, the Commission concluded that the transaction, as modified by the commitments, would no longer raise competition concerns. The decision is conditional upon full compliance with the commitments.
Executive Vice-President Margrethe Vestager, in charge of competition policy, said: “Celanese and Dupont’s Mobility and Materials business compete head to head in the supply of thermoplastic copolyester, an essential input for the automobile sector. With their transaction, they would have a combined leading position in the market with only a few alternative suppliers. The commitments offered by Celanese, divesting a stand-alone business, fully remove our competition concerns as they ensure that a player will remain in the market.” A press release is available online