Commission opens in-depth investigation into proposed merger of Celanese’s and Blackstone’s acetate tow activities

Background and further information:

The European Commission showed preliminary concerns that the proposed transaction could reduce competition in the acetate tow market, and also that it would make tacit coordination between tow suppliers more likely.

Acetate flake is a chemical derivative of wood pulp that is mainly used in the manufacture of acetate tow. Acetate tow is a fibrous material made from acetate flake and is used to manufacture cigarette filters. The two companies involved were amongst the larget manufacturers of acetate tow at global level excluding China. The merged entity would become the new market leader with the risk of significantly reducing competition in the industry.

The transaction was notified to the European Commission on 12 September 2017.

The European Commission announced on 17 October 2017 an in-depth investigation to assess the proposed creation of an acetate flake and acetate tow joint venture by Celanese and Blackstone under the EU Merger Regulation.

Reuters, 17.10.17: EU regulators to investigate Blackstone, Celanese acetate tow merger https://uk.reuters.com/article/idUKKBN1CM2AH

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