On 5 August 2011, the European Commission cleared unconditionally the acquisition by Solvay of chemical producer Rhodia after a detailed Phase I investigation. The transaction, worth ca. 3.7bn euro, raised horizontal and vertical concerns. Although the transaction would significantly reduce the number of European producers of certain chemicals, following the parties’ submissions the Commission concluded that anti-competitive effects are unlikely because the geographic markets are global and the merged entity will be constrained by competition from existing and potential rivals located in other regions, particularly in Asia. Furthermore, the Commission concluded that the merged entity will have neither the ability nor the incentive to foreclosure competitors. RBB advised the parties alongside Freshfields Bruckhaus Deringer and Bredin Prat.

Derek Ridyard is speaking at the 15th Annual IBA Competition Conference in Florence on 16 September. He will join a panel of legal experts and practitioners to discuss private actions and the Commission’s consultation paper on the subject.

On 15 June 2011 the European Commission cleared the proposed acquisition of Columbian Chemicals by the Aditya Birla Group at the end of a Phase I investigation. Columbian and Birla are two of the four largest worldwide producers of carbon black, a chemical product used primarily in the manufacture of tyres, with smaller volumes destined to the production of printing inks and plastics.  The Commission examined the impact of the transaction on the European Economic Area and concluded that “although the merger would create one of the three largest companies in the sector, European customers would continue to enjoy healthy competition.”  In particular, the Commission found that continued competition would remain from different producers located within the EEA as well as from direct imports from Russian and Ukrainian manufacturers. Therefore, the Commission concluded that the transaction would not significantly impede effective competition in the EEA or any substantial part of it.  RBB advised the parties on this transaction, working together with a legal team from Shearman and Sterling.

The Dutch Trade and Industry Appeals Tribunal (CBB) found in favour of KPN in a judgement of 3 May 2011 concerning market definition for unbundled local loops (cases AWB 10/498, 10/536 and 10/545).  Market definition was a critical issue in KPN’s appeal against a market assessment decision by Dutch telecom regulator OPTA.  In essence OPTA argued in its decision of 2010 that unbundled copper local loops (MDF-access and SDF-access) and fiber to the home (FttH) local loops (ODF-access) are part of the same market as fiber to the office (FttO) local loops.  Based inter alia on a report prepared by RBB, the Tribunal found that OPTA had not proven that FttO local loops are part of the same market. RBB assisted KPN in this matter alongside Allen & Overy.  

On 3 May 2011, the Dutch competition authority (NMa) unconditionally cleared the acquisition of Oxxio by Eneco.  Eneco and Oxxio are supplier of electricity and gas on the Dutch market.  Prior to the acquisition, Oxxio was a subsidiary of Centrica. RBB was instructed by Houthoff Buruma, counsel to Eneco.  The decision of the NMa can be found here.

Richard Murgatroyd spoke at the Price Fixing & Collusion Conference on 26 & 27 May 2011 in Gauteng, South Africa. Richard  discussed the underlying economics of coordination and the estimation of its effects, for the purposes of authority investigations and private damages claims. See here for further details.