In a press statement from the European Commission, it has been announced that the proposed acquisition of Huber Silica by Evonik has been approved, subject to divestment of some of both companies’ activities relating to precipitated silica.

M&A
Both Evonik and Huber Silica are manufacturers of speciality chemicals, including precipitated silica — used to make products such as toothpaste and also in defoamers (anti-foam agents used in industrial processes).
In its investigation, the European Commission found that there were some competition concerns in relation to precipitated silica for toothpaste and for defoamer applications as well as hydrophobic precipitated silica. These concerns were mainly raised because of the relatively high combined market shares of the merged companies and the limited competition in these markets.
To address these concerns, Evonik and Huber Silica have offered to divest the following: Evonik’s precipitated silica business for dental applications in Europe, Middle East and Africa; Huber Silica’s precipitated silica business for defoamer applications in the European Economic Area (EEA); and Huber Silica’s hydrophobic precipitated silica business in the EEA.
Divestment includes full transfer of the production technology to a suitable purchaser’s production facilities, with a commitment from Evonik and Huber Silica to provide technical support and a transitional supply agreement. The purchaser needs to be an established producer of precipitated silica with an existing market presence in the EEA, to ensure the success of the production transfer and effectiveness of the commitments.
As these commitments address the Commission’s concerns the proposed merger was approved, although the decision is conditional upon fill compliance with the commitments.