The Commission has approved the merger of Austrian company Constantia Industries AG (Constantia) with German company Kronospan Holding GmbH (Kronospan). Both companies trade in the furniture industry and supply wood-based products to the market. Following its investigation, the Commission found that if Kronospan acquired from Constantia the three companies originally proposed, there would have been a substantial interference with competition in the raw particle board sector. Following negotiations, the Commission approved the acquisition on the basis that Kronospan only acquires from Constantia the German company Sprela and the Hungarian company Falco. The third company, Fundermax, is to remain an independent competitor to Kronospan, who has agreed not to acquire it within a certain period of time. The Commission believes this solution will maintain competition in the raw particle board market.