ARNHEM, Netherlands (Oct. 24)—British capital investment firm CVC Capital Partners has withdrawn plans to create a new cellulose-based industrial fibers company following a decision by the European Union Commission to withhold consent for its acquisition of Austrian fibers producer Lenzing A.G. The commission based its decision on "non-compatibility" with European Union competition laws. CVC owns 64 percent of Dutch fibers producer Acordis B.V. and had planned to transfer Acordis' Cordenka rayon yarn business to the new company, Zellulosefaser Beteiligungs-GmbH. The commission cited concerns about a number of markets where Lenzing activities would overlap with the relevant fiber operations of Acordis. Lenzing management expressed its regret regarding the decision, but said it would have no material effect on the company's 2001 financial results. CVC had no comment.
CVC drops plans to buy Lenzing following EU board's decision
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