EC Approves Creation of Biobutanol Joint Venture Between BP, Dupont
July 10, 2009 // Published as a news service by IHS
The joint venture plans to develop and commercialize technologies to enable the production of biobutanol, a fuel component produced from biomass. It also aims to produce and distribute biobutanol to a very limited extent.
The joint venture's operations will take place mainly in the U.S.
The EC's July 8 conclusion was that the transaction would not significantly impede effective competition in the European Economic Area (EEA) or any substantial part of it.
The EC found that the proposed transaction would not give rise to horizontal overlaps between the activities of the parent companies, as they are currently not active in the licensing of any production technologies for butanol or in the supply of butanol.
The EC's investigation also ruled out any competition concerns due to vertical relationships, given BP's limited position on the downstream markets of gasoline supply, both at the European Union and national levels.
For more information, see the case description on the EC's competition web page.
Background
BP Biofuels is part of one of the world's largest energy companies. BP's main businesses are the exploration, development and production of oil and gas, the refining, manufacturing and marketing of oil products and petrochemicals, the transportation and marketing of natural gas and a growing business in renewable, low-carbon and alternative energies.
DuPont is a multinational diversified science company engaged in the research, development, production, distribution and sale of a wide variety of products, including chemical products, plastics, agro-chemicals, paints and seeds.
Source: European Commission (EC).