EU: No For Acordis-Lenzing Merger

Acordis and Lyocell will not be merged. EU's Commission announced that such a merger would have created a dominant position or even a monopoly for various segments of the viscose and lyocell markets.

EU's Commission prohibited the acquisition of Austrian group Lenzing by CVC Capital Partners. CVC already owns 64% of Acordis, the former fiber department of Akzo which was merged with UK's Courtaulds in 1998.

By merging Acordis with Lenzing, CVC would have created a world giant on the viscose market. The new group, already called NewCo by CVC, would have been world's fifth largest fiber maker with between €1.4 billion and €1.6 billion in revenues and 7,500 employees worldwide.

According to EU's Commission, "the concentration would have led to very serious competition concerns in the production of viscose staple fibres, where Lenzing is the leading supplier in the European Economic Area," it said in a statement.

Monopoly on the lyocell market

On the lyocell market, a monopoly would have been formed, since Acordis and Lenzing are the sole producers of the new fiber.

In addition, viscose and lyocell are non-substitutable and may not be easily replaced by other similar products, EU's Commission explained.

EU's imports of viscose products are also very low, "considerably below 10%," and customers will not find easy to shift to other suppliers.

Only three small EU's producers would have remained, NewCo excepted : Sniace of Spain, Svenska Rayon of Sweden and Säteri of Finland.

CVC proposed to share the lyocell technology with other producers, but the Commission rejected this offer.

Lenzing's former owner was Bank Austria, which will transfer ownership to its subsidiary, the B&C Holding Gmbh, before finding new candidates. There will be no hurry in again selling Lenzing, the bank already warned.

An Austrian investor, Hannes Androsh, had offered to take over Lenzing, but its proposal of 80 per share was below CVC's one of €90 per share.

October 18, 2001

Send your News/Releases for publication to [email protected]
Added: October 18, 2001
Start script - 1542218177.4444 Start news id check - 1542218177.4445 After news id check - 1542218177.4449 After cookie_code - 1542218178.8458 Before news detail - 1542218178.8458 After news detail - 1542218178.8464 Start cat select - 1542218178.8465 After cat select - 1542218178.8466 before preg replace - 1542218178.8466 After preg replace - 1542218178.8467 Before tag engine - 1542218178.8467 After tag engine - 1542218178.8517 Before mptt engine - 1542218178.8517 After mptt engine - 1542218178.8517 Before related engine - 1542218178.8517 After related engine - 1542218178.8534 Before update hits - 1542218178.8535 After update hits - 1542218178.8536 After update news_hits - 1542218178.8544 After mem_only_views - 1542218178.8544 -------------------------------------------------- Total Exec time:- 1.4099998474121
AddThis Social Bookmark Button   Tell a friendBookmark AddThis Feed Button
Related News:

Website design by InWiz • © - 2000-2018. Internet Wizards All rights reserved. About usTerms & ConditionsDisclaimerPrivacy policy • 14-11-2018