Antitrust Law Daily Wrap Up, ACQUISITIONS & MERGERS NEWS: EC clears acquisition of P&G Duracell business by Berkshire Hathaway, (Jul 23, 2015)

By Linda O’Brien, J.D., LL.M.

The European Commission (EC) has approved under the European Union (EU) merger regulation Berkshire Hathaway’s acquisition of the Duracell business from Procter & Gamble, all of the U.S., the EC announced today.

Berkshire Hathaway is a holding company owning subsidiaries that engage in a diverse range of business activities. The Duracell Business manufactures and supplies portable batteries. The Duracell business is currently part of the international consumer goods company Procter & Gamble (P&G). The Commission concluded that the proposed acquisition would not raise competition concerns, given the absence of horizontal overlaps and the existence of numerous competitors in the vertically-related market where the parties are active. The transaction was examined under the normal merger review procedure.

Sika. The EC has approved under the EU merger regulation the proposed acquisition of Sika of Switzerland by Saint-Gobain of France. Sika is a global specialty chemicals company, with a particular focus on construction chemicals. It also produces mortars for construction, as well as chemicals for other industries such as sealants and adhesives used in automotive industry. Saint-Gobain is active worldwide in the manufacturing of glass, high performance materials, and construction products, including mortars and glass packaging.

The parties' activities overlap regarding mortars for construction, certain construction chemicals, and other chemicals products. The transaction also gives rise to a vertical link between Saint-Gobain's distribution of building materials and Sika's production of those materials, as well as a number of vertical links in construction materials and chemicals. The EC concluded that the proposed acquisition would not raise competition concerns because the combined market shares of the parties are moderate and a large number of competitors will remain active after the merger on all markets concerned by the transaction.

Royal DSM NV. The acquisition of control by CVC Capital Partners of Luxembourg over Royal DSM NV's fiber intermediates and composite resins business—including DSM Fibre Intermediates International B.V., DSM Composite Resins Holding International B.V., and DSM Fibre Intermediates China B.V, all of the Netherlands—has been cleared by the EC under the EU merger regulation.

CVC is a private equity investor that holds interests in a number of companies active in various industries, including the distribution of commodity and specialty chemicals, the waste management and manufacturing of mineral wool insulation products, and the manufacturing of industrial specialty dry-mix mortar products. DSM is active in the composite resin business and the production of various specialty and commodity chemicals, together with the provision of site services. The transaction gives rise to a number of vertical overlaps in the markets affected. However, the Commission concluded that the proposed acquisition would raise no competition concerns, as the parties' market shares on the upstream and downstream markets are moderate and other suppliers will continue to be active on both levels.

Helthjem. The EC has also approved under the EU merger regulation the acquisition of joint control over the new Norwegian company Helthjem by a subsidiary of Amedia, also of Norway, together with its current parent, a subsidiary of Schibsted. Helthjem will offer delivery of parcels in Norway. Schibsted is an international media group headquartered in Norway. Amedia is a Norwegian media group. The Commission determined that the proposed acquisition would not raise competition concerns because of the parties' negligible shares in the market in which Helthjem will be active or in connected markets. The transaction was examined under the simplified merger review procedure.

Companies: Berkshire Hathaway Inc.; Procter & Gamble Co.; Sika AG; Saint-Gobain S.A.; CVC Capital Partners; Royal DSM NV; Schibsted Media Group

News: AcquisitionsMergers Antitrust