January 4 (SeeNews) - Romania's competition authority said it has endorsed the takeover of varnish and paint manufacturer Deutek by the European arm of US-based global supplier of paints, coatings and fiberglass PPG.
At the beginning of November, PPG Europe BV said that it had reached an agreement with Deutek's sole owner, Emerging Europe Accession Fund (EEAF) to acquire Deutek for an undisclosed sum.
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"Following a review of the transaction, the Competition Council found that it does not raise significant obstacles to effective competition in the market, in particular by creating or strengthening of a dominant position," the Competition Council said in a statement on Tuesday.
PPG Europe BV is a Dutch-registered limited liability company, part of US-based PPG (Pittsburgh Plate Glass) Industries. PPG member companies are active in the production and selling of paints, industrial materials, chemicals and glass in over 150 countries around the world, mainly in America, Europe and Africa. In Romania, PPG Europe BV's subsidiary is PPG Coatings Romania.
Deutek was established in 1993 under the name of Dufa Romania, a joint venture between two local entrepreneurs and Germany's Meffert AG. In 2005, the company was acquired by Dutch group Europaint, controlled by US investment fund Advent International and was rebranded to Deutek.
In 2008, Deutek bought Romanian dry mortars trading company Bengoss Comimpex for 19 million euro ($19.8 million) and local mortars and adhesives manufacturer Scan for 4 million euro.
In 2013, Advent International sold Deutek to EEAF, a private equity fund managed by Axxess Capital.
Deutek's products are sold in more than 120 do-it-yourself stores and 3,500 independent retail outlets in Romania.
($=0.9588 euro)