13.6.2007 Official Journal of the European Union L 151/41 COMMISSION DECISION of 20 December 2006 declaring a concentration compatible with the common market and the functioning of the EEA Agreement (Case COMP/M.4215 — Glatfelter/Crompton Assets) (notified under document number C(2006) 6764) (Only the English text is authentic) (Text with EEA relevance) (2007/403[EC) On 20 December 2006 the Commission adopted a Decision in a merger case under Council Regulation (EC) No 139/2004 of 20 January 2004 on the control of concentrations between undertakings (the EC Merger Regulation) (1), and in particular Article 8(1) of that Regulation. A non-confidential version of the full Decision can be found in the authentic language of the case and in the working languages of the Commission on the website of the Directorate-General for Competition, at the following address: http:/ [ec.europa.eu/comm/competition/index_en.html . SUMMARY United Kingdom). Crompton was a manufacturer of o . - specialty papers and wet laid fibre materials, and the (1) ~ On 16 August 2006, the Commission received a notifi- leading supplier to the tea-bag and coffee filter (4) cation pursuant to Article 4 of Regulation (EC) No 139/2004 of a concentration whereby PH Glatfelter Company (Glatfelter, USA) acquired sole control of the Lydney Business of JR Crompton Ltd in Administration (Lydney Business, UK) by way of purchase of assets. Both Glatfelter and the Lydney business are active in the production of wet laid fibre material for tea and coffee filtration. The Commission’s market investigation has revealed that despite high market shares on the global market for wet laid fibre material for tea and coffee filtration, the notifying party will be constrained by a number of competitors, in particular by the British company Purico that has recently significantly increased production capacity in China. Furthermore, competition from alternative materials to wet laid fibre material for tea and coffee filtration will constrain the notifying party’s ability to increase prices. The decision therefore concludes that no significant impediment to effective competition will result from the merger. II. THE PARTIES Glatfelter is a New York stock market listed manufacturer in the specialty papers and composite fibres business areas. Specialty papers include wall covering papers, special printing paper, etc. Through its subsidiaries’ factories Glatfelter manufactures wet laid fibre for the production of tea-bags, coffee filters and coffee pads, as well as other specialty papers. The Lydney Business is a part of the assets of former Crompton Ltd in Administration (hereinafter Crompton, () O] L 24, 29.1.2004, p. 1. industry. Crompton comprised three production facilities with a total of six inclined wire paper machines in the UK: the Lydney mill with three inclined wire machines and a polypropylene fibre operation, the Simpson Clough Mill with two inclined wire machines and the Devon Valley Mill with one inclined wire machine and one flat wire machine. IIl. THE OPERATION After Crompton was placed in court ordered adminis- tration (a United Kingdom insolvency procedure) on 7 February 2006, the appointed administrators (the Administrators) decided, to sell off Crompton’s assets. Hence the Administrators held a public sales process. After evaluation of the several initial indicative bids, the Administrators decided, according to the notifying party, to invite Glatfelter and other companies to submit a final offer. Glatfelter acquired on 9 March 2006, through its subsidiary Glatfelter UK, the majority of assets of Crompton’s production facility at Lydney, Glouces- tershire, UK including all tangible and intangible assets necessary to carry on the Lydney Business as a going concern. However, certain contracts and the back office functions formerly provided by Crompton’s head office were excluded. The assets subject to the transaction are collectively referred to as the ‘Lydney Business’. The transaction concerning the acquisition of the Lydney Business by Glatfelter is referred to as ‘the Lydney Trans- action’.