Press Release: Mergers: Commission clears proposed acquisition of DSM Special Products by Arsenal Capital Partners, subject to conditions

The European Commission approved under the EU Merger Regulation the proposed acquisition of chemical company DSM Special Products (DSP) of The Netherlands by Arsenal Capital Partners (Arsenal), a US private equity firm. Arsenal owns Velsicol, a chemical company active in the EEA through its Estonian plant. DSP is a chemical company with a single production plant, in Rotterdam. Both parties produce benzoic acid, a raw material used in the production of a variety of goods, including as an antimicrobial preservative in food and drinks, in plasticisers, pharmaceutical goods and pet food. In August 2008, the Commission opened an in-depth investigation because of competition concerns. Arsenal made the commitment to divest the whole of its liquid and solid benzoic acid production, as well as sodium benzoate production in the European Economic Area (EEA). In the light of these commitments, the Commission concluded that the proposed transaction would not significantly impede effective competition in the EEA or any substantial part of it.