Acquisition of the Dynoplast group by CVC European Equity II Ltd.

CVC European Equity II Limited provides management and consultancy services. It is a subsidiary of CVC Capital Partners Europe Limited as well as a member of the CVC Capital Partners group of companies. Dyno produces explosives, chemicals and micro-particles. Following the acquisition, Dyno and CVC will create a joint venture called Oxemclose Limited, which will then acquire Dynoplast.

The only sector in which there will be an overlap is in the production of industrial containers. The Commission declined to define the product market in detail. It indicated, however, that the industrial container market would be the relevant one. This would include plastic and steel drums as well as intermediate bulk containers (IBC). Alternatively, the plastic and steel drum market could be used.

The market is primarily a national one, although there may be some cross-border/regional markets. The Commission did not go into more detail on this point. It said that in spite of the fact that the parties’ share of the plastic, steel drums and IPC market was approximately 25-30%, the increase in market share following the acquisition would be small. This is due to the fact that Dynoplast has a market share of only 1-10%. For this reason, the acquisition would not affect competition.

A number of strong competitors will remain in the market. Powerful multi-national companies that often use more than one supplier generate much of the demand for industrial containers. The customers who were contacted by the Commission were not concerned about the impact this transaction would have on competition in the marketplace. The acquisition was therefore declared compatible with the common market and the EEA agreement.