# C_2007058EN.01001201.xml

| 13.3.2007 | EN | Official Journal of the European Union | C 58/12 |
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Opinion of the Advisory Committee on concentrations given at its 141th meeting on 30 June 2006 concerning a draft decision relating to Case COMP/M.3796 — OMYA/J.M. HUBER PCC

Rapporteur: United Kingdom

(Text with EEA relevance)

(2007/C 58/05)

| 1. | a)
The Advisory Committee agrees with the Commission that the notified operation, which was referred to the Commission pursuant to Article 22 ECMR, constitutes a concentration within the meaning of Article 3(1)( b) of Council Regulation (EC) No 139/2004, and that b)
it does not have a Community dimension. | a) | The Advisory Committee agrees with the Commission that the notified operation, which was referred to the Commission pursuant to Article 22 ECMR, constitutes a concentration within the meaning of Article 3(1)( b) of Council Regulation (EC) No 139/2004, and that | b) | it does not have a Community dimension. |
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| a) | The Advisory Committee agrees with the Commission that the notified operation, which was referred to the Commission pursuant to Article 22 ECMR, constitutes a concentration within the meaning of Article 3(1)( b) of Council Regulation (EC) No 139/2004, and that | | | | |
| b) | it does not have a Community dimension. | | | | |

| 2. | The majority of the Advisory Committee agrees with the Commission that for the purposes of assessing the present transaction:
a)
calcium carbonates can be distinguished from other industrial minerals used for applications in the paper industry. b)
calcium carbonates for coating and filling applications are not substitutes from a customer's perspective. Calcium carbonates for filling applications
c)
based on supply-side considerations, filling PCC and coating PCC do not belong in the same product market. d)
i)
the market investigation and ii)
the econometric study support a conclusion that there are degrees of competitive constraint between filling PCC and filling GCC and to a lesser extent, vice versa. A minority of the Advisory Committee disagrees and a minority abstains. e)
with regard to the supply of PCC filler, which may be carried out by on-site plant or by merchant market supply, it is not necessary to come to a conclusion as to whether or not on-site supply of PCC filler forms a distinct market since the proposed transaction will not give rise to competition concerns under any reasonable product market definition. A minority of the Advisory Committee disagrees. Calcium carbonates for coating applications
f)
it is not necessary to come to a conclusion as to whether there are distinct markets for the different GCC coating grades. g)
all coating calcium carbonates (i.e. coating PCC and coating GCC, including steep GCC and blends of GCC and PCC) are interchangeable or substitutable to some extent for customers. h)
it is not necessary to conclude whether merchant and on-site supplies of PCC for coating constitute two separate markets. | a) | calcium carbonates can be distinguished from other industrial minerals used for applications in the paper industry. | b) | calcium carbonates for coating and filling applications are not substitutes from a customer's perspective. | c) | based on supply-side considerations, filling PCC and coating PCC do not belong in the same product market. | d) | i)
the market investigation and ii)
the econometric study support a conclusion that there are degrees of competitive constraint between filling PCC and filling GCC and to a lesser extent, vice versa. A minority of the Advisory Committee disagrees and a minority abstains. | i) | the market investigation and | ii) | the econometric study support a conclusion that there are degrees of competitive constraint between filling PCC and filling GCC and to a lesser extent, vice versa. A minority of the Advisory Committee disagrees and a minority abstains. | e) | with regard to the supply of PCC filler, which may be carried out by on-site plant or by merchant market supply, it is not necessary to come to a conclusion as to whether or not on-site supply of PCC filler forms a distinct market since the proposed transaction will not give rise to competition concerns under any reasonable product market definition. A minority of the Advisory Committee disagrees. | f) | it is not necessary to come to a conclusion as to whether there are distinct markets for the different GCC coating grades. | g) | all coating calcium carbonates (i.e. coating PCC and coating GCC, including steep GCC and blends of GCC and PCC) are interchangeable or substitutable to some extent for customers. | h) | it is not necessary to conclude whether merchant and on-site supplies of PCC for coating constitute two separate markets. |
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| a) | calcium carbonates can be distinguished from other industrial minerals used for applications in the paper industry. | | | | | | | | | | | | | | | | | | | | |
| b) | calcium carbonates for coating and filling applications are not substitutes from a customer's perspective. | | | | | | | | | | | | | | | | | | | | |
| c) | based on supply-side considerations, filling PCC and coating PCC do not belong in the same product market. | | | | | | | | | | | | | | | | | | | | |
| d) | i)
the market investigation and ii)
the econometric study support a conclusion that there are degrees of competitive constraint between filling PCC and filling GCC and to a lesser extent, vice versa. A minority of the Advisory Committee disagrees and a minority abstains. | i) | the market investigation and | ii) | the econometric study support a conclusion that there are degrees of competitive constraint between filling PCC and filling GCC and to a lesser extent, vice versa. A minority of the Advisory Committee disagrees and a minority abstains. | | | | | | | | | | | | | | | | |
| i) | the market investigation and | | | | | | | | | | | | | | | | | | | | |
| ii) | the econometric study support a conclusion that there are degrees of competitive constraint between filling PCC and filling GCC and to a lesser extent, vice versa. A minority of the Advisory Committee disagrees and a minority abstains. | | | | | | | | | | | | | | | | | | | | |
| e) | with regard to the supply of PCC filler, which may be carried out by on-site plant or by merchant market supply, it is not necessary to come to a conclusion as to whether or not on-site supply of PCC filler forms a distinct market since the proposed transaction will not give rise to competition concerns under any reasonable product market definition. A minority of the Advisory Committee disagrees. | | | | | | | | | | | | | | | | | | | | |
| f) | it is not necessary to come to a conclusion as to whether there are distinct markets for the different GCC coating grades. | | | | | | | | | | | | | | | | | | | | |
| g) | all coating calcium carbonates (i.e. coating PCC and coating GCC, including steep GCC and blends of GCC and PCC) are interchangeable or substitutable to some extent for customers. | | | | | | | | | | | | | | | | | | | | |
| h) | it is not necessary to conclude whether merchant and on-site supplies of PCC for coating constitute two separate markets. | | | | | | | | | | | | | | | | | | | | |

| 3. | The Advisory Committee agrees with the Commission that for the purposes of assessing the relevant geographic markets for calcium carbonates affected by the present operation:
a)
for merchant supply (PCC and GCC) the relevant geographic market is as follows:
i)
For merchant filling calcium carbonates, it will vary between 400 km and up to a maximum of 2 000 km depending on the plant, the product and the mode of transport; ii)
For merchant coating calcium carbonates, it will vary between 450 km and 2 900 km b)
For customers capable of having on-site filling supply solutions, the geographic scope is at least EEA-wide. | a) | for merchant supply (PCC and GCC) the relevant geographic market is as follows:
i)
For merchant filling calcium carbonates, it will vary between 400 km and up to a maximum of 2 000 km depending on the plant, the product and the mode of transport; ii)
For merchant coating calcium carbonates, it will vary between 450 km and 2 900 km | i) | For merchant filling calcium carbonates, it will vary between 400 km and up to a maximum of 2 000 km depending on the plant, the product and the mode of transport; | ii) | For merchant coating calcium carbonates, it will vary between 450 km and 2 900 km | b) | For customers capable of having on-site filling supply solutions, the geographic scope is at least EEA-wide. |
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| a) | for merchant supply (PCC and GCC) the relevant geographic market is as follows:
i)
For merchant filling calcium carbonates, it will vary between 400 km and up to a maximum of 2 000 km depending on the plant, the product and the mode of transport; ii)
For merchant coating calcium carbonates, it will vary between 450 km and 2 900 km | i) | For merchant filling calcium carbonates, it will vary between 400 km and up to a maximum of 2 000 km depending on the plant, the product and the mode of transport; | ii) | For merchant coating calcium carbonates, it will vary between 450 km and 2 900 km | | | | |
| i) | For merchant filling calcium carbonates, it will vary between 400 km and up to a maximum of 2 000 km depending on the plant, the product and the mode of transport; | | | | | | | | |
| ii) | For merchant coating calcium carbonates, it will vary between 450 km and 2 900 km | | | | | | | | |
| b) | For customers capable of having on-site filling supply solutions, the geographic scope is at least EEA-wide. | | | | | | | | |

| 4. | The majority of the Advisory Committee agrees with the Commission that the notified concentration raises no competitive concerns for customers of filling calcium carbonates supplied with either a merchant or (despite the loss of Huber as a potential bidder) on-site supply solution in:
a)
Austria b)
France c)
Finland or d)
Sweden. A minority of the Advisory Committee disagrees on 4(c) and a minority abstains on 4(a), 4(b), 4(c) and 4(d). | a) | Austria | b) | France | c) | Finland or | d) | Sweden. |
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| a) | Austria | | | | | | | | |
| b) | France | | | | | | | | |
| c) | Finland or | | | | | | | | |
| d) | Sweden. | | | | | | | | |

| 5. | The Advisory Committee agrees with the Commission that Huber is a potential competitor on the market for calcium carbonates for paper coating applications and that, absent the merger, Huber would very likely grow into an effective competitive force. |
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| 6. | The Advisory Committee agrees with the Commission that the merger would reduce the incentives for and benefits of innovation arising from development of coating GCC/PCC blends and additives. |
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| 7. | The Advisory Committee agrees with the Commission that the notified concentration is likely to significantly impede effective competition, in particular through the strengthening of Omya's dominant position in the markets for coating calcium carbonates for affected customers in the South of Finland. |
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| 8. | The majority of the Advisory Committee agrees with the Commission that the effect of the concentration on calcium coating customers in Northern Finland, Sweden, France and Austria is not sufficiently likely and therefore that it creates no significant impediment to effective competition in respect of those customers. A minority disagrees. |
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| 9. | The majority of the Advisory Committee agrees that the undertakings offered, consisting of the divestiture of the Kuusankoski PCC on-site plant and the coating and additive technology, together with a suitable and up-front purchaser, will remove the significant impediment to effective competition arising and will ensure that the purchaser would be placed in a similar position to Huber. A minority disagrees. |
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| 10. | The majority of the Advisory Committee agrees with the Commission that consequently, the proposed transaction will not significantly impede effective competition in the common market or a substantial part of it, within the meaning of Article 2(2) of the Merger Regulation and can therefore be declared compatible with Article 2(2) and 8(2) of the Merger Regulation and the EEA Agreement. A minority disagrees. |
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| 11. | The Advisory Committee asks the Commission to take into account all the other points raised during the discussion. |
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