European Commission OKs merger between Reichhold and Polynt, with conditions
The European Commission has conditionally approved a merger between chemical companies Reichhold, which is based in the United States, and Polynt, which is based in Italy.
Both companies make resins used to manufacture reinforced plastics.
The final merger decision is conditional on the divestment of Reichhold's French Etain plant.
Both Reichhold and Polynt's resins are used to create products such as cultured marble and other manmade countertop materials, as well as automotive repair putties and bowling balls.
The commission said that a merger raised some concerns about competition in the marketplace for such resins, since a merger would mean a high market share, compared to competing companies. Reichhold and Polynt offered to sell off Reichhold's Etain plant, which is the company's largest, along with its customer information. Ashland is the proposed buyer of the plant. The merger will be official once the commission approves the sale of the Etain plant.
Organizations in this story
European Commission Brussels, Brussels