The ongoing acquisition by Belgium“s Solvay of a 60% stake in the Bulgarian soda ash manufacturer, Sodi, is being investigated by the Italian anti-trust authorities (AGCM). The AGCM will decide by 20…
The ongoing acquisition by Belgium“s Solvay of a 60% stake in the Bulgarian soda ash manufacturer, Sodi, is being investigated by the Italian anti-trust authorities (AGCM). The AGCM will decide by 20 April 1997 whether to oppose the deal. Solvay holds 80% of the Italian market for soda ash and Sodi supplies 8%. The remainder is accounted for by small local manufacturers. The AGCM claims that the acquisition may reinforce Solvay“s already dominant position in the Italian market and could create a “quasimonopoly“ by eliminating its largest competitor. Solvay has been involved in talks with Sisecam of Turkey, in an attempt to reach an agreement whereby Sisecam would acquire 25% of Solvay“s proposed 60% stake in Sodi. This would cut Solvay“s stake in Sodi to 45%. Sodi operates the world“s largest soda ash plant with a capacity of 1.2 million tons/year. The AGCM is concerned about Solvay“s control over the marketing of Sodi“s products in Italy. Solvay operates a 950,000 tonnes/year soda ash facility at Rosignano, Italy, accounting for a quarter of the company“s total output of soda ash in Europe.