The proposed acquisition of joint control of the Spanish company MaxamCorp Holding S.L. by US based Advent International Corporation and approximately 110 individuals including Maxam's current managers, technical experts, other employees and co-investors, has been approved by the Commission.

The European Commission has cleared the acquisition of joint control of the Spanish company MaxamCorp Holding S.L. by US based Advent International Corporation and approximately 110 individuals including Maxam's current managers, technical experts, other employees and co-investors. The investigation carried out by the Commission under the EU Merger regulation draw the conclusion that the merged entity would continue to face sufficient competition.

Advent is a global financial services company with investments in a range of markets including pharmaceuticals, software, drilling, and insurance. Maxam is the head of a diversified group of companies which develops, manufactures and commercialises a wide range of products including packaged and bulk explosives, ammunition and initiating systems and chemical products. The proposed transaction gives rise to a vertical relationship between Advent's production of the oxo-alcohol 2-ethylhexanol (2-EH) and Maxam's downstream production of 2-ethyhexyl nitrate (2-EHN), a cetane number improver for diesel fuel.

The investigation done by the Commission found that 2-EH producers would continue to have a range of alternative customers inside and outside the European Economic Area (EEA) and that the merger would not result in any substantial change in the supply relationship between Advent and Maxam. Moreover, the Commission concluded it was unlikely that the transaction would lead to concerns relating to the supply of 2-EH to 2-EHN producers because of the existence of alternative suppliers with sufficient production capacity, the increasing trend of imports, a sufficient degree of buyer power from 2-EHN customers and a lack of incentives for the merged entity to engage in an input foreclosure strategy. The Commission therefore concluded that the transaction would not significantly impede effective competition in the EEA or any substantial part of it.