The European Commission has launched a far-reaching investigation into the proposed takeover of the Special Products division of chemicals firm DSM by the US investment firm Arsenal Capital, reports ANP news service on Thursday.

According to the EC, the deal will give Arsenal too much dominance on the market for raw materials used in conservatives. The company also owns Velsicol Chemical which makes the same two conservation products for the food and drinks industry.
DSM announced the sale of its Special Products arm to Arsenal in March and expecting to make a profit of just over €10m on the transaction at the time.