Beginning of July the European Commission has approved the acquisition of sole control by CVC European Equity II Limited over BSN Emballage SA, part of the Groupe Danone SA (France) and certain subsidiaries of Gerresheimer Glas AG (Germany). The companies acquired are producing glass containers for food and beverages.
CVC belongs to the CVC Capital Partners group. BSN manufactures glass containers and bottles for both food and beverages, production units being located in France, Spain and the Netherlands. Gerresheimer manufactures glass containers and bottles for food and beverages and has its production units in Germany.
The Commission was of the opinion that the market for glass used as packaging material was the product affected by the operation and defined it to be the relevant product market. Therefore the Commission examined the effects of the operation in EU Member States, specifically in France, Benelux countries and Germany.
The result is that in France the new entity’s market share will be nearly of two fifth,which is more or less similar to the market share of its main competitor, Saint Gobain Emballage. The new entity’s market share in Germany will be smaller, about one forth of the market.
It seems therefore that the merger will not create a single dominant position for the new entity. It seems also that it will not create any change in the market structure in France because of a possible collective dominance by BSN and Saint Gobain Emballage. In the rest of the Member States examined, the operation will leave a sufficient degree of competition by other competitors in a market where imports are strong and where the buying power of customers for glass containers is high for food and beverages.
For all these reasons the European Commission has approved the acquisition.
This article is based and incorporates information provided by the European Commission (press releases) and is intended for general information. Specialist advice should be sought before acting on it. For further information, contact Nordic Law.