EU Clears Arkema To Buy Total's Resins Units
French specialty chemicals maker Arkema won EU regulatory approval on Friday to acquire parts of French oil major Total's chemicals business, to boost its coatings and resins operations and increase its Asian presence.
Arkema said in December the acquisition included Cray Valley and Cook Composite & Polymers coatings resins units and Sartomer's photocure resins operations, which are present in 13 countries.
The European Commission, the EU competition watchdog, said the deal would result in a vertical link between the parties, but that it would significantly reduce competition.
Arkema produces glacial acrylic acid (GAA) and acrylate esters which are used in making the resins of the photocures and coating businesses of Total.
"However, the Commission found that after the transaction Arkema would not have the ability to restrict competitors' access to the GAA and acrylate esters that it produces, given its limited market shares and the presence of other strong players," the Commission said in a statement.
"It will also lack the incentive to do so, because Arkema predominantly relies on other customers to place its sales of GAA and acrylate esters in the European Economic Area."
