On January 15 2020 the European Commission conditionally approved the acquisition of Omnova by Synthomer.
Omnova and Synthomer are both manufacturers of speciality chemicals. The transaction concerned numerous product and geographic markets, and had horizontal as well as non-horizontal dimensions. The Commission’s concerns were focused on the market for the supply of vinyl pyridine latex (“VP Latex”). This chemical product is primarily used by tyre manufacturers to provide safer and more solid tyres to the automotive industry. To address the Commission’s competition concerns, Synthomer offered to divest its global VP Latex business. The divestment includes the full transfer of the required technology, brands, manufacturing equipment, and other intangibles assets to a manufacturer with the proven knowledge regarding the relevant chemistry.
A CRA team advised the Parties on the definitions of relevant markets, the competitive effects as well as in the context of suitable remedies.
For more details, please see the Commission’s press release here.
