Madrid, October 30, 2025 — Spain’s Competition and Markets Authority (CNMC) has conditionally approved Bondalti Chemicals S.A.’s acquisition of Ercros S.A. after a Phase II investigation found competition concerns in the sodium hypochlorite market.
Market Overlaps and Risks
Both companies manufacture basic inorganic and organic chemical products, particularly chlorine and its derivatives — including caustic soda, hydrochloric acid, and sodium hypochlorite.
The CNMC’s in-depth review found that the transaction would significantly increase concentration in several regional markets, where the merged firm would hold over 50% market share within a 400 km radius of their production sites in Torrelavega, Estarreja, Sabiñánigo, and Vila-seca.
The authority warned that the acquisition would strengthen Bondalti as the largest supplier of sodium hypochlorite in Spain, eliminating its closest rival and creating a risk of unilateral price increases due to weak buyer bargaining power.
Commitments and Supervision
To address these concerns, Bondalti offered binding commitments that the CNMC deemed adequate and proportionate:
- Under the conditions, Bondalti must sell sodium hypochlorite to third-party manufacturers at cost price, up to 85,000 tonnes per year.
- Terms will be set in a CNMC-approved standard supply contract applicable to all eligible buyers.
- The commitment will last five years, renewable up to 15 years.
- An independent trustee will monitor compliance under CNMC supervision.
Next Steps
While the CNMC’s approval allows the merger to proceed, the decision will be forwarded to the Minister of Economy, Trade and Enterprise, who may refer it to the Council of Ministers for consideration on broader public-interest grounds.
Bondalti notified the acquisition on July 9, 2024, and the case (C/1480/24) was escalated to an in-depth review last December.
Source: https://www.cnmc.es/prensa/compra-ercros-bondalti-20251030?back=news
