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The European Commission has announced the approval of the proposed acquisition of Quest International by Givaudan, stating that under the EU Merger Regulation, the transaction would not significantly impede effective competition in the European Economic Area (EEA). Although the takeover would give Givaudan a leading position in the European markets for flavors and fragrances, the Commission's examination of the proposed transaction concluded that Quest and Givaudan are not the closet competitors in these markets. The combined firm would continue to face competitive pressure from several established multinational players with significant market shares as well as many smaller competitors to which customers could switch in the event of price increases. Additionally, in the market for aroma chemicals, the merged entity would not become the leading player and the presence of several strong, effective competitors with significant market shares would guard against the risk of any anti-competitive effects from the merger.