SOLVAY/SODI (Start of full phase investigation)
PRESS RELEASE
The Italian Competition Authority initiated a proceeding against Solvay, the Belgium-based international chemical and pharmaceutical company, and Sodi, whose equity capital is hold by the Bulgarian government.
The investigation is dealing with the privatization of Sodi by selling 60% of its equity capital to Solvay. The product concerned with the merger is the sodium carbonate, which is used as a catalyst in the manufacture of glass. On the basis of a preliminary examination of prices, product characteristics, demand and existing barriers to entry, the Authority deemed that such a merger was to be appraised within the national market.
In Italy, Solvay has a dominant position in the market of sodium carbonate. Sodi ranks second whereas the other firms hold insignificant market shares. The merger subject to investigation could strengthen Solvay's dominant position and hence consolidate the quasi-monopoly situation existing in the Italian market of sodium carbonate. In this way, Sodi, the most important Solvay's rival, would be eliminated and competition would be reduced substantially and on a lasting basis.