Brussels launches in-depth probe into Ineos-Solvay deal
The government of Brussels launched an in-depth investigation on the planned merger between Solvay and Ineos. This was spurred by concerns over the imbalance in the PVC and bleach competition, according to a report by Financial Times.
Solvay and Ineos are the two biggest producers of chlorvinyl (a raw material for PVC) in Europe. The proposed deal would combine the two rival companies to generate an annual revenue amounting to EUR4.3 billion, said Financial Times.
EU competition commissioner Joaquin Almunia said, "The proposed merger would remove a key competitor in the markets for PVC and bleach. The commission needs to make sure that competition is preserved for both products and ultimately prevent harm to European consumers."
The said investigation would undergo a second phase where the commission will come up with a decision regarding that matter within 90 days. The government of Brussels would have until March 21 to decide on whether the deal would be blocked, approved, or cleared with given conditions.