The Bundeskartellamt has granted approval for the acquisition of Sidra Wasserchemie GmbH by the Finnish water chemicals provider Kemira Oyj. This decision follows an in-depth competition law examination.

Andreas Mundt, President of the Bundeskartellamt, stated that their extensive investigations revealed that Kemira and Sidra hold a strong market position in iron salts in parts of Germany and neighboring countries. However, there are still sufficient competitors both domestically and internationally to limit the market behavior of the merging parties, allowing for the merger's approval.

Kemira Oyj operates globally, providing chemical products for water-intensive industries from 58 production sites, including locations in Germany, Poland, and the Czech Republic. Sidra, a family-owned company, supplies specific water chemicals, particularly iron salts, to customers in Germany and the Benelux countries from its production sites in Germany.

Iron and aluminum salts are crucial for drinking water treatment and wastewater purification, helping to remove phosphates and other pollutants. Water suppliers and municipal treatment plants rely on a consistent supply to meet regulatory standards, which ultimately affects water and wastewater fees.

The Bundeskartellamt's main investigation included a detailed analysis of the companies' revenues, sales volumes, and supply chains. Given the high demand for water chemicals and their relatively low value, transportation costs limit feasible delivery distances, with metal salts rarely transported over 500 kilometers.

Despite the strong market position of Kemira and Sidra, the investigation found that there are adequate alternative suppliers available, including those from neighboring countries, to maintain competitive pressure. Additionally, the demand for metal salts may increase due to new EU regulations on wastewater treatment, which impose stricter requirements for the removal of micro-pollutants.