Merger of PVC firms authorised
Tuesday 05 June 2012
On 4 June, the European Commission cleared the proposed acquisition of Wavin N.V., a manufacturer of pipe systems of the Netherlands, by Mexichem Soluciones Integrales Holding S.A. de C.V. of Mexico. Mexichem is specialised in the development, production and marketing of PVC pipe systems for fluid conduction. The Commission examined the competitive effects of the proposed acquisition with regard to the vertical relationship between the supply of PVC and the supply of pipe systems, notably which use PVC as an input. The Commission’s investigation showed that the proposed transaction would not significantly alter the market structure and that post transaction the merged entity would face competitive pressure from a number of credible competitors. Mexichem, primarily active in Latin America, is specialised in the development, production and global marketing of PVC and plasticisers as well as the production and supply of some intermediates. Mexichem also produces PVC pipe systems, joints and plastic accessories for fluid conduction (primarily water), and others like electricity and natural gas. Wavin is a Europe-focused company specialised in the manufacture and supply of pipe systems from various materials. Wavin produces and sells pipe systems and solutions for gas, water, sewage, drainage, cable ducting and other construction purposes, together with the fittings for such systems.