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
Date: 2001-09-14
Institutions: Advisory Committee on Restrictive Practices and Dominant Positions
Subjects: chemical industry, economic concentration, merger control

14.9.2001

EN

Official Journal of the European Communities

C 256/3

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 (cid:151) 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 Regu-
lation 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
for
there
single
low-pressure process
three
markets for the individual processes (slurry, solution
and gas phase);

relevant product market
technology packages or

is

a

(b) the Advisory Committee agrees with the draft decision
the proposed concentration will strengthen the
the

that
dominant
Carbide
low-pressure technology package market(s);

of Union

position

on

(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 ethyl-

eneamines markets;

(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.

(c)

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

the

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
a
geographic
low-pressure technology package market is world wide;

dimension

relevant

the

for

(c)

the Advisory Committee agrees with the draft decision
that
for each ethyl-
eneamine is world wide.

the relevant geographic market

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;

6. The majority of the Advisory Committee agrees with the
Commission that
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.

the improved undertakings,

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.