The last hurdle standing in the way of Solvay’s (Brussels / Belgium; www.solvay.com) takeover of French speciality chemicals manufacturer Rhodia (Paris; www.rhodia.com) – see also Plasteurope.com of 16.06.2011 – has been removed after the European Commission concluded that the transaction would not raise competition concerns.

The EU investigation found that the two companies’ activities are mostly complementary in nature, although it did identify several horizontal and vertical overlaps. In the latter case, for example, Solvay produces hydrogen peroxide, which Rhodia in turn uses in its production of amine oxides. Another overlap was identifed among automotive customers, which both companies supply with polyamides.

Despite these overlaps, the commission found that the acquisition would not significantly impact the structure of the relevant markets or for that matter the new, merged entity’s ability to shut out customers or competitors.