BRUSSELS (Alliance News) - The European Commission on Tuesday said it has opened an in-depth investigation to assess whether the proposed acquisition of Rexam PLC by Ball Corporation is in line with the EU Merger Regulation.
The Commission is concerned that the proposed transaction may reduce competition in the beverage can and aluminum bottle manufacturing industry in the European Economic Area (EEA).
The Commission now has 90 working days, until November 25, 2015, to investigate in-depth the proposed acquisition and determine whether these initial concerns are founded. The opening of an in-depth inquiry does not prejudge the final result of the investigation.
Commissioner Margrethe Vestager, in charge of competition policy, commented: "Very many of us buy drinks in cans - they are convenient and used everywhere. It is therefore very important that the Commission makes sure that Ball's takeover of Rexam does not restrict effective competition and so risk price increases that could be passed on to consumers".
Rexam and Ball are, respectively, the first and second largest beverage can makers in the EEA and also the two market leaders worldwide. After the proposed takeover, their combined market shares would be very high at both EEA and regional level and only two other players would remain on the market. The Parties are also the two suppliers with the most extensive network of plants across the EEA.
After the transaction, the Parties would own approximately two thirds of the plants located in Europe.
Copyright RTT News/dpa-AFX
