The European Commission has given its approval for the acquisition of PET resin producer Artenius UK Ltd by KP Chemical, a subsidiary of South Korean conglomerate Lotte Group.
The EC cleared the takeover after concluding it wouldn not harm competition in the region.
KP Chemical produces Polyethylene Terephthalate (PET) resin and Purified Terephthalic Acid (PTA) – a feedstock for the plastic. Artenius, which was placed into administration in July 2009, also manufactures PET and PTA.
European competition regulators gave the deal the green light after scrutinising the “horizontal overlaps” between the companies.
“As the combined market share of the parties would remain moderate in these markets and the combined entity would face competitive pressure from other chemical companies, the Commission found that the transaction would not give rise to any competition concerns”, said a Commission statement.
The buyout is scheduled for regulatory clearance on 12 February, 2010.