The European Commission has approved, under the EU Merger Regulation, the acquisition of sole control of BASF's construction chemicals (EB) business of Germany by Lone Star Funds Group of the U.S.

 

The Commission concluded that the proposed transaction would raise no competition concerns given the very limited horizontal overlap between the activities of BASF's EB business with those of Xella. Likewise, given several other well-established competitors in each of these markets, the vertical overlaps between the activities of BASF's EB business with those of Xella for building and insulation materials and Stark for building materials distributor do not give rise to competition concerns. The transaction was examined under the normal merger review procedure.

 

BASF's EB business produces and distributes in the European Economic Area (“EEA”) chemical based admixtures and construction systems for new constructions, maintenance, repair and renovation of residential and commercial buildings, as well as infrastructure. 

 

Lone Star is a private equity firm that invests globally in real estate, equity, credit and other financial assets. It controls Xella International S.A. (“Xella”) of Germany and Stark Group A/S (“Stark”) of Denmark. Xella is a producer of building and insulation materials in the EEA. Stark is a building materials distributor in the Nordic countries and Germany.