EU clears Birla's acquisition of Columbian Chemicals

ERJ staff report (DS)

Brussels -- The European Commission has cleared under the EU Merger Regulation the proposed acquisition of US-based Columbian Chemicals by Indigold Carbon, which is controlled by the Indian Aditya Birla Group, both worldwide producers of carbon black. The Commission has concluded that although the merger would create one of the three largest companies in the sector, European customers would continue to enjoy healthy competition.

The acquisition, which would bring together two of the four largest worldwide producers of carbon black, was notified to the European Commission for clearance on 5 May this year because the companies do significant business in Europe.

The EC said, "The current tight supply of carbon black within Europe is attributable to the recession and the consequent reduction in production capacity. The Commission found that this potential merger had no significant impact on production levels that were rather cyclical in nature and that production capacity is likely to respond to the recovery of demand. The Commission therefore concluded that the transaction would not significantly impede effective competition in the EEA or any substantial part of it."

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Press release from European Commission