The European Commission has approved the acquisition of the German speciality polyester manufacturer Trevira by Reliance Industries Ltd, the largest Indian private sector company.
The Commission of the European Communities in its notification on Wednesday said: "The commission has decided not to oppose the notified operation and to declare it compatible with the common market and with the EEA (European Economic Area) agreement."
Trevira has a capacity of 130,000 tonne per annum of polyester fibre and yarn, spread over four locations in Europe namely Bobingen and Guben (Germany), Silkeborg (Denmark) and Quevaucamps (Belgium).
In addition, it has a state-of-the art research and development facility at Bobingen.
With the acquisition of Trevira and its expansions underway in India, the combined total polyester fibre and filament yarn capacity of Reliance will exceed 1.8 million tonnes, making Reliance, the largest polyester fibre and yarns producer in the world.
According to official sources, Trevira is a highly specialized manufacturerof polyester products. The company has several valuable patents and technologies together with a strong R&D setup with substantial accumulated research knowledge.
Trevirais the market leader in Europe in high value applications of polyester, especially in automotive and home textiles. It is a widely known and well-recognised brand both amongst customers and producers of synthetic fabrics.
Commenting on the acquisition, PCI, leading UK-based polyester consultant said:"The market was surprised that Reliance suddenly snapped up the Trevira polyester fibres operation in Germany."
"Theyachieved this ahead of two other candidates from within Greater Europe who had possibly expected to acquire the business for a minimal financial outlay."
A prominent German newspaper Frankfurter Allgemeine Sonntagszeitung on Wednesday said:"This acquisition showed that Indians are not only able to manage IT outsourcing but also want to emerge as the champions themselves. They have the ambition and they have probably also the ability."