Man Ferrostaal buy of Eurotecnica cleared by EU

Man Ferrostaal buy of Eurotecnica cleared by EU

	Published : Wed, 31 Jan 2007 17:07 By : Agencies Print this Story

BRUSSELS (AFX) - The European Commission said it has cleared German-based MAN AG's MAN Ferrostaal's proposed acquisition of Italian engineering and licensing company Eurotecnica.

The commission said the transaction would not significantly impede effective competition in the European Economic Area.

Ferrostaal is active worldwide as a general contractor for industrial plants. It also holds a minority shareholding in a melamine plant under construction in Trinidad and Tobago.

Eurotecnica's main business is the licensing of melamine production technology and the supply of basic engineering services to its licensees. It does not produce any melamine itself.

'It is currently the only company licensing high-pressure melamine production technology to third parties. However, other licensors offer low-pressure melamine production technology which allows production of melamine of equivalent quality,' the commission said.

The commission concluded that after the planned transaction, Ferrostaal would have no incentive to restrict Eurotecnica's licensing activities. As it has only a minority shareholding in a melamine plant under construction, it currently does not compete downstream with Eurotecnica's customers.

'Even after the melamine plant in Trinidad and Tobago is finished, Ferrostaal will be active in the melamine market only to a minor extent,' it said.

'It would therefore have no economic incentive to discontinue Eurotecnica's profitable licensing business after the planned transaction'.

Melamine is a specialty chemical which is used in a wide range of applications such as surfaces (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.

simon.zekaria@thomson.com

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