The European Commission has approved China National Bluestar's acquisition of Norwegian silicon producer Elkem.
The Commission carefully examined the $2bn merger, holding an enquiry into possible coordination by the Chinese state in the resulting effects on market behaviour of different state-owned firms, and concluded that there would still be sufficient competition in the silicon market.
The commission came to this decision in light of Elkem-Bluestar's limited market share and the presence of strong players in Europe like FerroAtlántica of Spain, Dow Corning of US and Wacker of Germany.
Elkem produces high-grade silicon for the solar industry and computers from its production facilities in Europe, North and South America, Africa and Asia.
Bluestar is a subsidiary of the state-owned China National Chemical Corporation, which produces a wide range of chemical products.
