The EU Commission cleared DIC Corporation/BASF Colors & Effects with remedies 08.12.20
On 7 December, the European Commission approved DIC Corporation’s proposed acquisition of BASF Colors & Effects (BCE), subject to conditions.
DIC and BCE are both active in the production and sales of pigments and other colourants, and they horizontally overlap in several categories of pigments worldwide. The Commission’s investigation primarily focused on perylene and quinacridone. These are types of pigments that provide violet-red shades and are used for high-end applications, such as automotive coatings, advanced plastics applications, and some industrial applications.
Following a Phase I investigation, the Commission cleared the transaction accepting DIC’s proposal to divest its manufacturing plant where the majority of DIC’s perylene and quinacridone pigments are produced. These commitments will almost entirely remove the overlap between DIC and BCE and ensure that customers will have sufficient alternatives for the supply of perylene and quinacridone pigments.
Working alongside White & Case, RBB assisted DIC in proceedings before the Commission as well as in several other jurisdictions. The transaction has been already unconditionally cleared in Brazil, China, Colombia, Pakistan, South Korea, Taiwan, Turkey, and Ukraine.
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