By Nathan Allen 
 

The European Commission has opened an in-depth investigation into BASF SE's (BAS.XE) proposed takeover of Solvay SA's (SOLB.BT) nylon business, according to a statement issued Tuesday.

BASF said in September that it planned to close the 1.6 billion euros ($1.87 billion) transaction in the third quarter of 2018.

However, the commission said it is concerned that the deal could reduce competition in the supply of key materials in the nylon production chain.

"We need to carefully assess whether the proposed acquisition would lead to higher prices or less choice for European businesses and, ultimately, consumers," said Margrethe Vestager, commissioner in charge of competition policy.

A merger between Solvay and BASF's respective nylon units would create a company almost double the size of its closest competitor, the commission said.

Write to Nathan Allen at nathan.allen@dowjones.com

(END) Dow Jones Newswires

June 26, 2018 10:49 ET (14:49 GMT)