Brussels, 30 November 2022
The European Commission takes note of Kronospan’s and Pfleiderer’s decision to terminate their agreement according to which Kronospan intended to acquire sole control over Pfleiderer Polska, the Polish subsidiary of the Pfleiderer Group.
The abandonment follows the findings of the Commission’s in-depth investigation and the failure of Kronospan to submit suitable remedies.
Executive Vice-President Margrethe Vestager, in charge of competition policy, said:
“Kronospan and Pfleiderer are both among the most important suppliers of wood-based panels in Europe. Both produce wood-based construction and furniture materials, such as fibreboards and particleboards.
Every year, about 30 million m3 of particleboards are produced in Europe, most of which is used in the manufacturing of furniture, mainly for shelving and tabletops. The European furniture industry employs close to a million people and is comprised of 120,000 enterprises, most of them small and medium-sized, which rely on particleboards as a key input to produce affordable furniture.
The proposed acquisition would have brought together two leading suppliers and created a dominant player in the markets for the supply of raw and melamine-coated particleboards around the parties’ plants in Poland and the Baltics. Our in-depth investigation showed that the proposed transaction would negatively affect competition in these markets, leading to higher prices, reduced quality or less choice for customers. As the remedies offered by Kronospan did not address our competition concerns, we could not clear the transaction. We take note of Kronospan’s decision to abandon their deal.”
Background
More information will be available on the Commission’s competition website, in the Commission’s public case register under case number M.10325.