EU antitrust regulators to investigate Kronospan's Polish deal

EU antitrust regulators on Tuesday opened a full-scale investigation into Austrian wood panel maker Kronospan's bid for German wood maker Pfleiderer's Polish unit after Kronospan declined to offer remedies to address competition concerns.

EU antitrust regulators on Tuesday opened a full-scale investigation into Austrian wood panel maker Kronospan's bid for German wood maker Pfleiderer's Polish unit after Kronospan declined to offer remedies to address competition concerns. The European Commission said it would decide by Aug. 22 whether to clear or block the deal and that it would also consider a request from the Polish competition agency to take over the case.

"The transaction may lead to higher prices and less choice for construction and industry customers as well as for end-consumers for particleboards, fibreboards and components," the EU competition enforcer said in a statement. It said the combined entity could also block rivals. Both companies are leading suppliers of wood-based panels in Europe.