IPIC gets EU nod for MAN Ferrostaal deal
Abu Dhabi, March 14, 2009
Abu Dhabi state-owned International Petroleum Investment Company (IPIC) has won EU clearance to buy Germany's MAN Ferrostaal on condition that it divest MAN's stake in melamine producer Eurotecnica.
The European Commission said it had concerns that the deal as initially planned could have reduced competition on the melamine market because of the relationship between Eurotecnica and leading Austrian melamine producer AMI, controlled by IPIC.
Melamine is a specialty chemical used in the paper, wood and automotive industries.
'In view of the remedies offered, I am satisfied that after the proposed takeover, there would be no adverse effects on competition on high quality melamine markets,' EU Competition commissioner Neelie Kroes said in a statement on Friday.
She said customers in the paper, wood, car and other industries would not suffer from reduced choice or higher prices as a result of the deal.
IPIC said when the deal was announced that it would pay 490 million euros ($631 million) for a 70 per cent stake in the industrial services unit of the MAN group, with an option to buy the rest by 2010.
A joint venture company, IPIC MAN Ferrostaal (IMF), will be set up in Abu Dhabi shortly with IPIC holding 60 per cent equity.
IPIC invests in oil-related projects for the government of Abu Dhabi, which is the world's fifth-largest oil exporter.-Reuters