Ineos, Doeflex PVC Compounding Deal Approved
Plans by Ineos to acquire UK-based PVC compounder Doeflex have been approved by the EU Commission, and the asset transfer is now expected to be completed on 1 September.
The new company, to be known as Ineos Compounds, will be managed by an integrated team from both of the former entities.
After examining the effects of the merger on competition in the field, the Commission said it had concluded that it was satisfied that the merged company would continue to face strong competition after the merger, and customers would still have sufficient alternative suppliers.
Ineos said the compounding merger "presents a strategic opportunity for both parties and is highly complementary to their growth strategy." The newly combined business will have a turnover exceeding €200 million and manufacturing sites in the UK, Sweden and Switzerland.
With activities are concentrated at Swindon, UK, Doeflex claims to have a portfolio of nearly 10,000 different compounds in both rigid and flexible PVC. The Ineos business has operations in the UK, Switzerland and Sweden, with a capacity of rigid and flexible PVC products estimated at 100,000 t/y.
In announcing the plans in May of this year, the two companies said the goal of the merger is to be "better positioned to meet the needs of European customers in the rapidly changing markets and highly challenging economic environment."
