Solvay’s acquisition of Rhodia cleared unconditionally by the European Commission

On 5 August 2011, the European Commission cleared unconditionally the acquisition by Solvay of chemical producer Rhodia after a detailed Phase I investigation. The transaction, worth ca. 3.7bn euro, raised horizontal and vertical concerns. Although the transaction would significantly reduce the number of European producers of certain chemicals, following the parties’ submissions the Commission concluded that anti-competitive effects are unlikely because the geographic markets are global and the merged entity will be constrained by competition from existing and potential rivals located in other regions, particularly in Asia. Furthermore, the Commission concluded that the merged entity will have neither the ability nor the incentive to foreclosure competitors. RBB advised the parties alongside Freshfields Bruckhaus Deringer and Bredin Prat.