Link Securities | The Spanish National Markets and Competition Commission (CNMC) has authorised the acquisition of Ercros by Esseco on condition that the buyer terminates key agreements with the Korean group UNID and avoids exclusivity agreements with distributors of potash products, according to a report yesterday in the online newspaper elEconomista.es. The transaction, notified on 28 June 2024 and authorised in the second phase, consists of the acquisition of sole control of Ercros by Esseco through an unsolicited takeover bid submitted on 27 June 2024. The CNMC sees risks to competition in the markets for potassium hydroxide, both solid and liquid, and potassium carbonate, and therefore the approval of the merger is conditional on the parties submitting commitments. During its analysis, the authority highlighted that the affected markets are ‘highly concentrated’, with Esseco and Ercros as the two main operators and close competitors, and access to the most competitive sources of supply in terms of price, quantity and stability of supply.
Competition Authority approves merger of Ercros and Esseco, under certain conditions
