The Commission's preliminary

investigation indicated potential competition concerns in the markets

of pre-impregnated paper and abrasive paper backings, where

the new company would have high market shares both in the European Economic Area

and worldwide. The decision to open an in-depth inquiry does not

prejudge the result of the investigation. The Commission now has 90

working days, until 29 April 2013, to take a final decision on whether

the transaction would reduce effective competition in the EEA.

Commission Vice President in charge of competition policy Joaquín

Almunia said: “This proposed merger in the paper industry would remove

a competitor from some markets which are already highly concentrated.

The Commission needs to make sure that effective competition is

preserved and prevent harm to customers, particularly when the only few

available sources of supply are at stake."