Press Release: Mergers: Commission approves proposed acquisition of MAN Ferrostaal by IPIC, subject to conditions

The European Commission cleared under the EU Merger Regulation the proposed acquisition of MAN Ferrostaal of Germany, a general contractor that constructs turnkey industrial plants, by International Petroleum Investment Company (IPIC) of the United Arab Emirates. The decision is conditional upon IPIC's commitment to divest MAN Ferrostaal's stake in the melamine production technology licensing and plant engineering company Eurotecnica. The Commission had concerns that the transaction, as originally notified, would reduce competition on the high-quality melamine markets because of the vertical relationship between Eurotecnica and the leading Austrian melamine producer AMI, controlled by IPIC. Melamine is a specialty chemical used, inter alia, in the paper, wood and automotive industry. In view of the remedies proposed, the Commission concluded that the operation would not significantly impede effective competition in the European Economic Area (EEA) or any substantial part of it.