Is the planned acquisition of polyurethane specialist Recticel (Brussels / Belgium; www.recticel.com) by Greiner (Kremsmünster / Austria; www.greiner.at) on the brink of collapse? From the looks of it, European Commission competition regulators seem unwilling to give the takeover their go-ahead just yet. Furthermore, it appears that the EU may even be considering subjecting the transaction, which Recticel has repeatedly classified as “undesirable”, to a more in-depth Phase 2 examination under competition law. Greiner itself said it expects such an investigation to take place.

The Austrian firm said it is conducting a “constructive dialogue” with the European Commission, noting that it seems “unlikely” that the EU approval would be granted immediately and a Phase 2 investigation could be avoided through an “economically appropriate package of remedies”, which means the sale of parts of the company that are relevant under competition law before or after the merger. Should the in-depth review occur – the current Phase 1 investigation is set to end on 24 November 2021 – Greiner said it intends to “review” its position.

A review by the EU Commission is not the only thing that could torpedo the planned takeover. At a special shareholder meeting on 6 December, Recticel investors are expected to vote on the sale of its largest business unit, Engineered Foams, to US competitor Carpenter (Richmond, Virginia; www.carpenter.com). If this deal goes through, Greiner could withdraw its purchase offer as it is targeting this division in particular.

Greiner submitted a takeover offer for all outstanding Recticel shares in May 2021, and made the bid official in October. The deadline for accepting this offer is mid-December. Recticel’s management has already explicitly advised its shareholders against selling their shares to the company (see Plasteurope.com of 05.11.2021).