Download Top margin 1

IP/03/167
Brussels, 3 February 2003
Commission clears acquisition by Belgium’s UCB of
three speciality chemical units from Solutia
The European Commission has cleared the proposed acquisition by Belgian
pharmaceuticals and speciality chemicals firm UCB SA/NV of the resins,
adhesives and additives businesses of US company Solutia Inc.
The Commission’s investigation has shown that UCB’s and Solutia’s activities
overlap mainly in resins for powder coatings, used amongst others in the
construction and domestic appliances sectors, and in resins for radiation curable
coatings.
The deal will make UCB the new market leader in Europe for polyester resins for
powder coatings where it and Solutia have strong positions. But the competitive
pressure from powerful competitors such as Dutch companies DSM and Akzo Nobel,
Eastman of the US and TotalFinaElf’s Cray Valley, and the existence of large excess
production capacity will prevent the creation of a dominant position on this market.
Regarding resins for radiation curable coatings, where UCB is already the market
leader in most European markets, the increment in market shares is marginal andthe
market structure will not therefore be significantly changed.
Resins enhance the resistance of coatings to sun reflection and other weather
wearing effects. Traditionally coatings were liquid based and used large quantities of
solvents, which are harmful to the environment. Power coatings do not require
solvents. Instead they are sprayed on metallic substrates and fixed by heating or
radiation curable coatings, which are liquid but fixed by exposure to radiation like UV.
UCB is a Belgian company active in the pharmaceuticals, performance films and
speciality chemicals businesses. It is listed on the Euronext stock Exchange.
US-based Solutia produces and sells high performance chemical components,
among which nylon products and performance films. It is listed on the New York
Stock Exchange.