EU Clears Celanese’s Purchase of DuPont’s Mobility and Materials Business
The European Commission has cleared Celanese’s proposed purchase of DuPont’s Mobility and Materials (M&M) business after the former agreed to sell its global thermoplastic copolymer business to allay competition fears.
Celanese is planning to divest the business, which includes a production facility in Ferrara, Italy, and the Pibiflex and Riteflex brands, to Italian engineering plastics producer Taro Plast. The Commission will have to formally approve Taro Plast as the buyer in a separate process.
Executive vice-president Margrethe Vestager, in charge of competition policy for the EU, said: “Celanese and DuPont's Mobility and Materials business compete head to head in the supply of thermoplastic copolyester, an essential input for the automobile sector. With their transaction, they would have a combined leading position in the market with only a few alternative suppliers. The commitments offered by Celanese, divesting a stand-alone business, fully remove our competition concerns as they ensure that a player will remain in the market.”
The Commission’s investigation showed that the companies compete in supplying the thermoplastics to the automotive, industrial and commercial, electric and electronic, and consumer markets.
DuPont agreed in February to sell most of its M&M business to Celanese for $11 billion. The sale was originally expected to close by the end of this year.
Author: Elaine Burridge, Freelance Journalist
