The European Commission has opened an in-depth second phase investigation into the proposed acquisition of M-real Zanders’ Reflex Mill, a German company, by the French company Arjowiggins. Both companies produce carbonless paper and other speciality premium fine paper. The Commission’s initial market investigation has indicated that the proposed merger would raise serious doubts with regard to competition in the carbonless paper market. In a post-merger scenario, Arjowiggins’ market share would account for more than half of the European carbonless paper market. The Commission is concerned that this situation might enable Arjowiggins to impose less favourable supply conditions or prices on its customers in the absence of sufficient alternative suppliers. The final decision is expected to be taken in April 2008.