The Competition Commission, or CC, an independent public body, which carries out investigations into mergers, markets and the regulated industries, announced it has provisionally found that the proposed acquisition by Akzo Nobel N.V. (AKZOY.PK) of Metlac Holding S.r.l. would result in a substantial lessening of competition in the supply of metal packaging coatings in the UK. The CC received a number of third party concerns relating to the loss of Metlac as a competitor. Evidence considered by the CC shows that Metlac is considered by customers to be especially price-competitive and that it represents a significant competitive constraint to AkzoNobel.
Roger Witcomb, CC Chairman and Chairman of the AkzoNobel/Metlac inquiry, said: "Metlac competes strongly with Akzo Nobel, the leading player, in these markets. A number of customers indicated that Metlac is a significant competitive force due to its low pricing, strong product quality and innovation and that its removal would eliminate a significant competitive constraint to Akzo Nobel and could therefore result in price increases."
The CC has published a Notice of Possible Remedies to remedy the harm to competition, which includes a remedy preventing AkzoNobel from exercising its call option.
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