Brussels, 4 June 2012
Mergers: Commission approves acquisition of Dutch pipe systems manufacturer Wavin by Mexican PVC producer Mexichem
The European Commission has cleared under the EU Merger Regulation the proposed acquisition of Wavin N.V., a manufacturer of pipe systems of the Netherlands, by Mexichem Soluciones Integrales Holding S.A. de C.V., of Mexico. The Commission's investigation confirmed that the proposed transaction would not raise competition concerns because the merged entity would continue to face sufficient competition.
The Commission examined the competitive effects of the proposed acquisition with regard to the vertical relationship between the supply of PVC and the supply of pipe systems, notably which uses PVC as an input. The Commission's investigation showed that the proposed transaction would not significantly alter the market structure and that post transaction the merged entity would face competitive pressure from a number of credible competitors.
The Commission therefore concluded that the transaction would not raise competition concerns.
The transaction was notified to the Commission on 23 April 2012.
Companies and products
Mexichem, primarily active in Latin America, is specialised in the development, production and global marketing of PVC and plasticizers as well as the production and supply of some intermediates. Mexichem also produces PVC pipe systems, joints and plastic accessories for fluid conduction, primarily water, and others like electricity and natural gas.
Wavin is a Europe-focused company specialised in the manufacture and supply of pipe systems from various materials. Wavin produces and sells pipe systems and solutions for gas, water, sewage, drainage, cable ducting and other construction purposes, together with the fittings for such systems.
Merger control rules and procedures
The Commission has the duty to assess mergers and acquisitions involving companies with a turnover above certain thresholds (see Article 1 of the Merger Regulation) and to prevent concentrations that would significantly impede effective competition in the EEA or any substantial part of it.
The vast majority of notified mergers do not pose competition problems and are cleared after a routine review. From the moment a transaction is notified, the Commission generally has a total of 25 working days to decide whether to grant approval (Phase I) or to start an in-depth investigation (Phase II).
More information on the case is available at:
Antoine Colombani (+32 2 297 45 13)
Marisa Gonzalez Iglesias (+32 2 295 19 25)