MOSCOW (MRC) -- The European Commission has approved under the EU Merger Regulation the acquisition of the industrial coatings business of German chemicals company BASF by AkzoNobel of the Netherlands, according to RISI Technology Channels.
BASF's industrial coatings business develops, manufactures and sells various industrial coating products. AkzoNobel is a global manufacturer of a wide range of paints, performance coatings and specialty chemicals. Both companies manufacture and supply industrial coatings, which are applied to various substrates to improve surface properties, including appearance, adhesion, corrosion resistance and scratch resistance. Their activities overlap in particular in the area of coil coatings, applied to aluminium or steel where they have a relatively strong combined market position.
However, the Commission concluded that the proposed acquisition would raise no competition concerns, because the merged entity will continue to face strong competition from other suppliers present on these markets. Although the companies are the leading suppliers of coil coating paint systems for domestic appliances, a number of well-established or expanding suppliers remain active in the market and customers are large sophisticated buyers.
As MRC wrote before, in February 2016, AkzoNobel said it is in discussions with BASF to acquire BASF’s industrial coatings business.
AkzoNobel Surface Chemistry is a global leader in the manufacturing and supply of specialty surfactants, synthetic and bio-polymer additives and specialty polymers. AkzoNobel currently employs more than 7,400 people in China.
BASF is the leading chemical company. It produces a wide range of chemicals, for example solvents, amines, resins, glues, electronic-grade chemicals, industrial gases, basic petrochemicals and inorganic chemicals. The most important customers for this segment are the pharmaceutical, construction, textile and automotive industries.
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