ECC APPROVES MONTEDISON/HERCULES VENTURE
The European Community Commission said
it had approved the creation of Himont, a company in which
Montedison SpA <MONI.MI> of Italy and Hercules Inc <HPC.N) are
major shareholders, after requesting changes in the two
partners' plans for the venture.
    Twenty pct of the capital of Himont, in which Montedison
and Hercules originally planned to take 50 pct stakes, has been
floated publicly and marketing and production agreements have
been modified on the Commission's advice, it said.
    Himont, which is incorporated in the U.S., Groups the two
firms' assets in the polypropylene sector.
    The modified agreements include the abandoning by Hercules
and Montedison of all their direct activities within the EC in
the downstream market of Himont.
    The EC authority said the modifications meant that the
creation of Himont did not appear to lead to restrictive
coordination of activities between Hercules and Montedison, nor
did their respective market shares give them a dominant
position.
    The Commission must approve such link-ups between
competitors under EC competition rules.
 REUTER
