Press Release: Mergers: Commission opens in-depth investigation into Glatfelter take-over of Crompton’s Lydney paper mill

The European Commission has opened a detailed investigation under the EU Merger Regulation into the acquisition by US-specialty paper manufacturer P.H. Glatfelter Company of a paper mill and related assets at Lydney (Gloucestershire, UK). Glatfelter has acquired the mill from J.R. Crompton Ltd., a UK-based manufacturer of wetlaid fibre products, which on 7 February 2006 was placed in court-ordered administration as part of UK insolvency proceedings. The wetlaid fibre materials produced at Lydney are used for products such as tea bags, coffee filters, wall paper, adhesive tapes, and as battery components. The Commission’s initial market investigation has found that the proposed acquisition may create a dominant supplier with the ability to restrict production and drive up prices in the industry. The Commission now has 90 working days (until 6 February 2007) to take a final decision on whether the concentration would significantly impede effective competition within the European Economic Area (EEA). The opening of an in-depth investigation does not prejudge the final result of the investigation.