Press Release: Mergers: Commission approves proposed take-over of part of Constantia’s particle board division by Kronospan Group, subject to conditions

The European Commission has cleared under the EU Merger Regulation the planned acquisition of part of the raw and coated particle board business of Constantia Industries AG of Austria by Kronospan Holding GmbH of Germany, a member of the Kronospan Group. Both companies are active in the manufacture and supply of wood-based products, in particular raw and coated particle board, decorative laminates and components, all used in the furniture industry. The Commission's in-depth investigation has shown that the concentration, as initially notified, would have led to a substantial impediment of effective competition in the raw particle board sector. To address the Commission’s concerns, the parties have modified the proposed transaction to the effect that Kronospan would acquire only two of the three companies originally targeted, with the third - the Austrian Fundermax business - remaining with Constantia. Moreover, Kronospan has committed itself not to acquire Fundermax for a certain period of time.