Commissie onderzoekt fusie Oostenrijks-Italiaanse ingeniersbureau's wegens mogelijke monopolievorming in melamine (en)

The European Commission has opened a detailed inquiry under the EU Merger Regulation into Austrian-based AMI's proposed acquisition of Italian engineering company Eurotecnica. The Commission is concerned that the transaction could impede competition on the markets for melamine and for the licensing of melamine production technology. The opening of this in-depth investigation does not in any way prejudge the final outcome. The Commission has now 90 working days (until 6 March 2006) to take a final decision on whether the concentrations would significantly impede effective competition within the European Economic Area or a significant part of it. This case did not meet the Merger Regulation's turnover criteria giving the Commission jurisdiction, but was referred to the Commission by the German Competition Authority.

"We want to ensure that that this proposed takeover does not restrict competition or result in European customers facing higher prices", said Competition Commissioner Neelie Kroes. "The European melamine market is already concentrated and there is a risk that competition may be reduced, because melamine producers and potential market entrants might not be able to obtain access to the necessary production technology"..

The Commission accepted the case as referred from the German competition authority. The Polish competition authority also joined the referral. The Commission began its initial investigation on 30 August 2005.

Melamine is a specialty chemical which is used in a wide range of applications such as surface applications (automotive industry or paper impregnation for the production of laminates), adhesives and glues (particularly in the wood industry for the production of chipboards and fibreboards) and as a flame retardant.

Agrolinz Melamine International ("AMI") is a leading melamine producer. It also has its own melamine production technologies which it has not licensed to third parties in the last ten years.

Eurotecnica is currently the only licensor for melamine production technology operating at a world-wide level. It also does the basic engineering work when a melamine plant is built but does not produce any melamine itself.

Results from the Commission's initial investigation have shown that the transaction may further strengthen AMI's already strong position on the melamine market. By buying the only licensor of melamine production technology that is active at a global level, AMI seems likely to be in a position to hamper further market entry and to control the expansion projects of current competitors. Furthermore, the elimination of these competitive constraints might increase the likelihood of coordinated commercial behaviour in the concentrated melamine market.

The Commission takes the view that there is a serious risk that competition will be impaired in these concentrated and complex markets, and that a closer analysis is therefore necessary. This will focus on the impact on melamine prices if melamine producers are denied access to the production technology, as seems likely.