INEOS-BASF deal gets CCI green light

The Competition Commission of India (CCI) has cleared INEOS's proposed deal to purchase entire stake of BASF in their joint venture entity Styrolution Holding Gmbh.
In an order, the CCI said, "The proposed combination is not likely to have an appreciable adverse effect on competition in India".
Styrolution Holding was incorporated under the laws of Germany as a 50:50 joint venture enterprise between INEOS AG and BASF entities, BASF (SE) and BASF Antwerpen, in 2011.
The proposed combination involves acquisition by INEOS Styrolution, a subsidiary of INEOS, of all shares held by the two BASF entities in Styrolution Holding Gmbh.

Further, an internal reorganisation would result in INEOS also transferring its shares in Styrolution to its subsidiary such that post-combination INEOS Styrolution would hold the entire shareholding in Styrolution Holding.
Styrolution Holding, in India, operates through its two subsidiaries -- Styrolution ABS (India) Ltd and Styrolution India Private Ltd -- which are engaged in manufacturing of ABS, Styrene Acrylonitrile Resin polymers, among others.

Both INEOS and BASF do not sell any of these products in India, other than through Styrolution India, CCI order said.
"...Given the absence of horizontal product overlap and an insignificant vertical relationship, the proposed combination is not likely cause any competition concerns in India," the fair trade regulator said.

INEOS is a global manufacturer of petrochemicals, speciality chemicals and oil products, while BASF is also a global company, whose product portfolio includes petrochemicals, intermediate chemicals and monomers.
The parties entered into the deal on June 30, 2014, pursuant to which a notice was filed before CCI on July 30 seeking its approval.