The European Commission raised concerns earlier this week that the planned takeover of Solvay's nylon business by German chemicals giant BASF could restrict competition, leading to higher prices.
Nylon is used in the manufacture of clothes, shoes and carpets, but also industrial goods, contributing, for example, to the quest for lighter cars and engines, the commission said.
Solvay, a Belgium-based chemicals company, is the only European company involved in every level of the nylon production chain. BASF's production processes are similar, but it doesn't produce a key input - an oil derivative called adiponitrile, or ADN - the commission said.
The merger would create an "important player" in the nylon compounds market with almost twice the market size as its nearest competitor, according to the commission, the EU's competition watchdog.
The commission announced an in-depth probe into the planned merger.
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