Press Release: Mergers: European Commission approves acquisition of chemical company Cognis by BASF, subject to conditions

The European Commission has cleared under the EU Merger Regulation the proposed acquisition of Cognis by BASF, both chemical companies of Germany. The decision is conditional upon the divestment of activities in the sector of hydroxy monomers, a chemical product used in coatings and adhesives. The proposed transaction, as initially notified, would have created a very strong player in a market where concentration is already high. To remedy the Commission's concerns, BASF offered to divest activities in the sector in question. In the light of these commitments, the Commission concluded that the proposed transaction would not significantly impede effective competition in the European Economic Area (EEA) or any substantial part of it.