Press Release: Mergers: Commission opens in-depth investigation into proposed takeover of Constantia’s particle board division by the Kronospan Group

The European Commission has opened a detailed investigation under the EU Merger Regulation into the planned acquisition 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. The in-depth investigation will enable the Commission to assess the effects of the proposed transaction on competition, notably in the raw particle board sector. The Commission now has 90 working days, until 19 October 2007, to take a final decision on whether the concentration would significantly impede effective competition within the European Economic Area (EEA) or a substantial part of it. The decision to open an in-depth inquiry does not prejudge the final result of the investigation.