IP/10/329
Brussels, 19 March 2010
Mergers: Commission approves proposed acquisition of Artenius UK Limited by KP Chemical
The European Commission has cleared under the EU Merger Regulation the proposed acquisition of UK-based chemicals company Artenius by KP Chemical, which is controlled by the global Korean conglomerate Lotte Group . After examining the operation, the Commission concluded that the transaction would not significantly impede effective competition in the European Economic Area (EEA) or any substantial part of it.
KP Chemical produces chemical products, including Purified Terephthalic Acid (PTA) and Polyethylene Terephthalate (PET) resin. PTA is the feedstock for the production of PET resin. PET resin is mainly used to make bottles. Artenius UK produces PET resin and PTA chemicals. In July 2009, it was placed into administration.
The Commission examined the competitive effects of the proposed transaction, notably the horizontal overlaps between KP Chemical and Artenius in the markets for PTA and PET resin. As the combined market share of the parties would remain moderate in these markets and the combined entity would face competitive pressure from other chemical companies, the Commission found that the transaction would not give rise to any competition concerns.
The transaction was notified to the Commission for regulatory clearance on 12 February 2010. More information on the case is available at:
http://ec.europa.eu/competition/elojade/isef/case_details.cfm?proc_code=2_M_5760
