The European Commission has cleared British chemicals company Ineos' proposed E290 mln acquisition of Borealis' operations in Norway. Ineos is a British company active in the production and distribution of specialty chemicals. Borealis Norway consists of polyolefin production facilities and 50% of Noretyl AS, a joint venture that operates a gas cracker that produces feedstock used in polyethylene and polypropylene production.
The transaction has not been found to significantly impede effective competition in the European Economic Area. The EU executive found that for the production of ethylene, polyethylene, propylene, polypropylene, as well as Crude C4 and pygas, the combined firm would not have any significant anti-competitive impact on the structure of the market and would continue to face several strong, effective competitors with significant market shares. The commission also studied the impact of the transaction on the upstream market for the purchase of liquid petroleum gas and ethane as feedstock for ethylene and propylene and concluded that there would be no risk of these markets being closed off.
Borealis is 65% owned by the International Petroleum Investment Company of Abu Dhabi and 35% owned by OMV AG, the Austrian oil and gas group.