A PYMNTS Company

Advent’s acquisition of Maxam cleared despite vertical links

By  |  February 7, 2012

The European Commission has cleared the proposed acquisition of joint control of Maxam by Advent and 110 individuals. The individuals include Maxam’s current managers, technical experts, other employees, and co-investors. The U.S.-based Advent is a global financial services company; Maxam is a Spanish company that manufactures explosives, ammuniation, and chemical products. 

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    The acquisition creates vertical links in two areas that the Commission nonetheless found not to raise serious competition concerns:

    We’d love to be your preferred source for news.

    Please add us to your preferred sources list so our news, data and interviews show up in your feed. Thanks!

    Add as Preferred Source

    1) The acquisition creates a vertical link between Advent’s production of the oxo-alcohol 2-ethylhexanol (2-EH) and Maxam’s downstream production of 2-ethyhexyl nitrate (2-EHN), a cetane number improver for diesel fuel. However, there are “alternative suppliers with sufficient production capacity, the increasing trend of imports, a sufficient degree of buyer power from 2-EHN customers and a lack of incentives for the merged entity to engage in an input foreclosure strategy.”

    2) There is also a vertical relationship created in the market for tungsten metal powder, boron amorphous, and butyl acetate. The Commission found that the two companies’ market shares and strong competition posed no risk of foreclosure. 

    Source: EC Press Release


    Related content: Reform of the EU Merger Regulation: Looking Out for the Minority (by Christian Riis-Madsen, Sophia Stephanou, & Killian Kehoe (O’Melveny & Myers))