Decision Nº M/03/017 from Competition and Consumer Protection Commission, 2003-07-08

• Jurisdiction: Ireland
• Parties: Makroform GmbH,Bayer AG
• Date: 08 July 2003
• Decision Number: M/03/017
• Decision Date: 08 July 2003
• Court: Competition and Consumer Protection Commission

Determination of the Competition Authority

Determination No. M/03/017 of the Competition Authority, dated 8 July 2003,

under Section 21 of the Competition Act, 2002

Notification No. M/03/017 – Acquisition of Makroform GmbH by Bayer AG

Introduction

1. On 16 June 2003 the Competition Authority, in accordance with Section 18 of the

Competition Act, 2002 (“the Act”) was notified, on a mandatory basis, of a

proposal whereby Bayer AG (Bayer) would acquire sole control of Makroform

GmbH (Makroform) by acquiring Röhm GmbH’s joint controlling interest in

Makroform.

The Parties

2. Bayer is a global business involved in the production and sales of chemical

products, polymers, pharmaceuticals products and pesticides. It has various

activities within the State.

3. Makroform is a joint venture currently subject to joint control by Bayer and

Röhm GmbH. Makroform is active in the production and sale of polycarbonate

(PC) and polyester plates. Its activities are based primarily in Europe, and

include sales of its products within the State.

Analysis

4. The notifying parties have submitted that sales of PC plates by Makroform

account for less than 10% of sales of PC plates within the State, and less than

10% of all plastic plates sold within the State. Bayer also has minority interests

in three further competitors that have an aggregate share of less than 16% in sales

of PC plates on a European-wide basis. In this case, the Authority found that

irrespective of whether the market was defined as a market for PC plates or a

broader market for plastic plates, the acquisition of sole control of Makroform by

Bayer would not substantially affect the level of competition within the State.

5. In assessing this matter, the Authority also considered whether the change from

joint to sole control could have any impact on upstream or downstream markets.

Bayer currently supplies polycarbonate (PC) granulates to Makroform and other

competitors which is an essential input into the manufacture of PC plates. The

Authority found that even if Bayer had greater incentive to discriminate in favour

of Makroform in the supply of PC granulates once it become a wholly owned

business, other alternative suppliers remained available to supply competitors.

1