Exclusive: EU-Based Chemical Producers Ask Commission to Probe Chinese Group over Deal in the UK

Why It Matters

If the Commission opens an investigation, it would set a precedent for using the Foreign Subsidies Regulation beyond EU borders and could curb Chinese market‑share gains in a strategic chemicals sector facing job losses.

Key Takeaways

• EU titanium‑dioxide producers file subsidy complaint against LB Group.
• Deal could let LB export duty‑free to EU via post‑Brexit UK.
• First potential EU investigation under Foreign Subsidies Regulation outside EU.
• EU chemical sector lost 9% capacity and 20,000 jobs since 2022.
• UK Competition and Markets Authority to decide on Greatham deal in May.

Pulse Analysis

The EU’s titanium‑dioxide market, essential for green‑energy technologies and aerospace, has been under siege from a wave of Chinese overcapacity. In response, the bloc imposed anti‑dumping duties on LB Group in January 2025, targeting its low‑priced imports. Yet the proposed acquisition of Venator’s Greatham plant would allow LB to route production through the UK, exploiting the EU‑UK trade agreement to bypass those duties, a maneuver that could reshape competitive dynamics across Europe’s chemical landscape.

The coalition’s complaint leverages the 2022 Foreign Subsidies Regulation, a tool designed to scrutinise non‑EU firms that benefit from state‑backed financial support when acquiring strategic assets. Although the regulation was crafted with China in mind, it has never been applied to transactions outside EU territory. An investigation would therefore test the Commission’s willingness to enforce the rule on a cross‑border deal involving a post‑Brexit UK asset, potentially expanding the regulatory reach and signaling stricter oversight of foreign‑backed takeovers.

Beyond legal precedent, the case carries weight for the EU chemical sector, which has shed roughly 9% of its production capacity and 20,000 jobs since 2022, according to Cefic. A successful probe could protect remaining domestic players and preserve critical supply chains, while also sending a broader message to state‑linked investors about the limits of market access in Europe. Stakeholders are watching closely, as the outcome may influence future foreign‑investment policies and the strategic balance of the global chemicals market.