ALUMINIUM: COMMISSION PROBES ALCAN, ALUSUISSE AND PECHINEY.
The Commission says now it will continue a detailed fact-finding operation under the Merger Regulation 4064/89, using as a legal test whether the Alcan-Alusuisse-Pechiney link-up might create or reinforce a dominant position, held either by a single entity (single dominance) or by a cluster of competitors presenting the structural characteristics of an oligopoly (collective dominance). At this stage of the investigation, the Commission considers that should the three-way merger go ahead, it would raise problems in three principal markets: Alumina trihydrate, a flame retardant used in order to prevent the flammability of materials, in particular in the construction industry (plastic floors, cables, other garments etc.); several flat rolled aluminium products, such as lithographic sheets (used in the photographic industry), beverage can stocks (for the manufacturing of aluminium beverage cans), food can stocks (used in the manufacture of aluminium food cans), automotive and architectural sheets; and several packaging products, such as flexible aluminium packaging, semi-rigid aluminium containers, aluminium cartridges and aluminium aerosol cans.Alcan, a Canadian Corporation, Alusuisse, a Swiss company, and Pechiney, a French firm, are involved in all aspects of the aluminium industry. Their activities include bauxite mining, alumina refining, power generation, aluminium smelting, manufacturing and recycling as well as research and technology. Alusuisse also has a strong presence in the packaging industry, as it produces flexible, rigid and semi-rigid packaging. Alusuisse's chemical business (Lonza) will be de-merged prior to the concentration. Pechiney is also active in packaging materials, including the production of aerosols, plastic bottles, plastic cosmetic containers and flexible packaging.
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|Comment:||ALUMINIUM: COMMISSION PROBES ALCAN, ALUSUISSE AND PECHINEY.|
|Date:||Nov 17, 1999|
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