Tailian International Investment Co., Ltd. ["Tailian"], Lianchu International Investment Co., Ltd. ["Lianchu"], USI Far East Corporation ["USI"]and Union Petrochemical Corp. ["UPC"] applied for permission for making direct and indirect acquisition of Feikuiya (Bermuda) Co., Ltd.'s holdings of stocks of Asia Polymer Corporation ["APC"], Huahsia Bay Co., Ltd. ["Huahsia"], and Taita Chemical Co., Ltd ["Taita"]

Chinese Taipei

Case:

Tailian International Investment Co., Ltd. ["Tailian"], Lianchu International Investment Co., Ltd. ["Lianchu"], USI Far East Corporation ["USI"]and Union Petrochemical Corp. ["UPC"] applied for permission for making direct and indirect acquisition of Feikuiya (Bermuda) Co., Ltd.'s holdings of stocks of Asia Polymer Corporation ["APC"], Huahsia Bay Co., Ltd. ["Huahsia"], and Taita Chemical Co., Ltd ["Taita"]

Key Words:

polyvinyl, indirect acquisition, combination.

Reference:

Fair Trade Commission Decision of the 272nd Commission Meeting; Letter (85) Kung Er Tzu No. 8510552-008; Decision (85) Kung Chieh Tzu No. 030

Industry:

Petrochemical Raw Material Manufacturing Industry (2112)

Relevant Laws:

Article 11 of the Fair Trade Law

Summary:

1. Tailian, Lianchu, USI, and UPC made direct and indirect acquisition of Feikuiya (Bermuda) Co., Ltd.'s holdings of stocks of APC, Huahsia and Taita, and the last-mentioned three enterprises' holdings of stocks of Taiwan Vinyl Chloride Industrial Co., Ltd. and Huayun Warehousing Co., Ltd. Such an act would lead to enterprises combination as set forth in Article 6(1)(ii) and Article 6(1)(v), which respectively state: "(Combination in terms of) holding or acquiring the shares or capital contributions of another enterprise to an extent of representing more than one-third of the total voting shares or the total capital stock of such other enterprise;"

"(Combination in terms of) controlling, directly or indirectly, the business operation or the employment and termination of personnel of another enterprise."

2. According to the content of the combination application submitted by Feikuiya Co., Ltd., Tailian, Lianchu, USI, and UPC, and the supplementary materials, USI, UPC, APC, Taita, Huahsia, and Taiwan Vinyl Chloride Industrial Co., Ltd. are all manufacturers of petrochemical products of different stages, and among them USI and APC are the only two manufacturers of LDPE in Chinese Taipei. Nonetheless, in view of the fact that no barriers have been set for imported petrochemical products, and the prices of domestically-produced petrochemical products are under constraint, such a combination is unlikely to affect adversely the competition of the local petrochemical industry. Moreover, the applicants whose businesses are based in Chinese Taipei have pledged that they will not abuse the right to file anti-dumping actions directly or indirectly through their subsidiary companies, or block imports from participating in the competition in local market by other undue means. Based on the aforesaid factors, the Commission decided to approve the application.

Summarized by Li, Yen-hsi

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