COMMISSION OPENS IN-DEPTH INQUIRY INTO TAKEOVER IN MELAMINE SECTOR.

The European Commission has launched an in-depth investigation into the proposed takeover of Italian engineering firm Eurotecnica by Austrian melamine producer AMI, citing concerns about possible harm to competition on the melamine market.

Announcing the second-stage inquiry under the EU Merger Regulation on October 18, the Commission said it was concerned that the deal could "impede competition on the markets for melamine and the licensing of melamine production technology". Eurotecnica is the only company granting licences for melamine production world-wide. AMI is the market leader in Europe for the production of melamine and also has its own melamine production technologies.

Commenting on the case, Competition Commissioner Neelie Kroes said that "the European melamine market is already concentrated", with a risk that "melamine producers and potential market entrants might not be able to obtain access to the necessary production technology". An initial investigation by the Commission revealed that the acquisition of...