BRUSSELS (Reuters) - The European Commission on Tuesday opened an in-depth investigation into the proposed purchase by Germany’s BASF (BASFn.DE) of Solvay’s nylon business, saying such a deal could reduce competition in the supply of the nylon production chain.
BASF agreed to buy Solvay’s (SOLB.BR) global polyamide business in September for 1.6 billion euros (1.41 billion pounds), aiming to enhance its access to key growth markets in Asia and South America.
“We need to carefully assess whether the proposed acquisition would lead to higher prices or less choice for European businesses and, ultimately, consumers,” European Competition Commissioner Margrethe Vestager.
The Commission, which oversees competition in the European Union, said it has until Oct. 31 to decide on whether it would let the deal go ahead.
Reporting by Robert-Jan Bartunek; editing by Foo Yun Chee