European Commission approves acquisition of Innovene by the INEOS Group

13-Dec-05

Under the EU Merger Regulation, the European Commission has cleared the proposed acquisition of Innovene, a US petrochemical company by INEOS, a UK based group involved in intermediate and speciality chemicals. The Commission concluded that the transaction would not significantly impede effective competition in the EEA or any substantial part of it. The Commission’s examination showed that the proposed operation does not raise horizontal or vertical competition concerns in the relevant markets. INEOS is a limited company with various wholly owned subsidiaries which are active worldwide in the production, distribution, sales and marketing of intermediate and speciality chemicals. It currently operates 46 manufacturing facilities in 14 countries worldwide, including Belgium, France, Germany, Italy, the UK and the US. Innovene Inc. is currently a wholly owned subsidiary of the British Petroleum Group and manufactures a range of petrochemicals, including olefins, such as ethylene and propylene, a range of polymers, and various other refined petrochemicals. Innovene currently operates five major complexes in the US, France, Germany and the UK as well as two large refineries in the UK and France.