Freudenberg’s acquisition of Low & Bonar cleared unconditionally in phase I 23.04.20
On 17 April, the European Commission (EC) has approved Freudenberg’s acquisition of Low & Bonar, following a Phase I investigation.
Both parties are active in the production and supply of PET nonwovens used, for instance, in floor coverings. Since there are relatively few European suppliers of nonwovens for certain applications, the EC was concerned that the merger might reduce competition in those market segments.
RBB assisted the parties in showing that their market position in those segments is contestable and that the expansion of Asian entrants with spare capacities will constrain the merged entity.
The EC recognised the increasing competition from Asian suppliers and cleared the transaction unconditionally in Phase I.
The press release can be found here.
RBB worked alongside law firms Jones Day and Freshfields Bruckhaus Deringer.