Opinion of the Advisory Committee on Concentrations given at the 76th meeting on 7 April 2000 and continuing at the 77th meeting on 14 April 2000 concerning a preliminary draft decision relating to case COMP/M.1671 - Dow Chemical/Union Carbide

(2001/C 256/03)

1. The Advisory Committee agrees with the draft decision that the proposed concentration constitutes a concentration within the meaning of Article 3(1)b of the Merger Regulation and that it has a Community dimension.

2. On the relevant product markets:

(a) the Advisory Committee agrees with the draft decision that the linear low density polyethylene C8 (LLDPE C8) constitutes a distinct product market;

(b) the Advisory Committee agrees with the draft decision that there is a relevant low-pressure technology package product market comprising low-pressure process plus catalyst, but that it is not necessary to decide whether there is a single relevant product market for low-pressure process technology packages or three markets for the individual processes (slurry, solution and gas phase);

(c) the Advisory Committee agrees with the draft decision that each ethyleneamine (EDA, DETA, TETA, TEPA, AEEA, AEP, and E100/HPA-X) constitutes a distinct product market.

3. On the geographic markets:

(a) the advisory Committee agrees with the draft decision that the relevant geographic market for LLDPE C8 is western Europe;

(b) the advisory Committee agrees with the draft decision that the relevant geographic dimension for a low-pressure technology package market is world wide;

(c) the Advisory Committee agrees with the draft decision that the relevant geographic market for each ethyleneamine is world wide.

4. On the competitive analysis:

(a) the Advisory Committee agrees with the draft decision that the proposed concentration will strengthen the dominant position of Dow Chemical on the LLDPE C8 market;

(b) the Advisory Committee agrees with the draft decision that the proposed concentration will strengthen the dominant position of Union Carbide on the low-pressure technology package market(s);

(c) The Advisory Committee agrees with the draft decision that the proposed concentration will create a dominant position on each ethyleneamine market.

5. The Advisory Committee agrees with the Commission that the undertakings proposed by the parties on 23 March 2000:

(a) remove the competition concerns raised on the LLDPE C8 market;

(b) remove the competition concerns raised on the ethyleneamines markets;

(c) taking account of the market test, are not sufficient to remove the competition concerns raised on the low-pressure process technology packages market(s).

6. The majority of the Advisory Committee agrees with the Commission that the improved undertakings, including some adjustments as exposed by the Commission, will be sufficient to remove all the competition concerns raised in the draft decision. A minority disagrees.

7. Thus, the majority of the Advisory Committee agrees with the Commission that the Dow Chemical/Union Carbide operation can be declared compatible with the common market pursuant to Article 8(2) of the Merger Regulation and with the functioning of the EEA Agreement. A minority disagrees.

8. The Advisory Committee recommends that the Commission takes into account all the matters raised by the Member States during the discussion.

9. The Advisory Committee recommends the publication of its opinion in the Official Journal of the European Communities.