Europe approves salt merger
venture called European Salt Company (ESCO) between German company
Kali & Salz AG and Solvay S.A. of Belgium.
The European Commission has approved the creation of a joint venture called European Salt Company (ESCO) between German company Kali & Salz AG and Solvay S.A. of Belgium.
ESCO will combine the parent companies' businesses for the production and sale of salt thereby creating Europe's second largest producer for crystallised salt behind Akzo of the Netherlands.
After investigation the Commission maintains that the concentration would not impede effective competition in Europe.
K+S and Solvay notified the Commission on 28 November 2001 of a plan to combine their activities in the field of production and distribution of salt (crystalline salt and brine, a highly concentrated salt water) into a jointly controlled venture in which they will hold interests of 62 per cent (K+S) and 38 per cent(Solvay).
The joint venture will have sole responsibility for the production of salt and its sale to third parties. It will operate production facilities primarily in Germany, France, Belgium and the Netherlands but also in Spain, Portugal and Italy.
A total of about 21 million tons were consumed in the European Economic Area (EEA) in the year 2000, of which approximately 5 million tons were produced by K+S and Solvay together.
