US FTC wants Aventis to reduce Rhodia stake to 5%
07 December 1999 18:03 [Source: ICIS news]
HOUSTON (CNI)--The US Federal Trade Commission (FTC) gave preliminary approval Tuesday to the planned merger of Germany's Hoechst and France's Rhone-Poulenc on the condition that the two firms perform certain divestitures in the cellulose acetate and direct thrombin inhibitors markets.
The preliminary approval requires the two companies' divestiture of some of their assets including their stake in Rhodia - Rhone Poulenc's specialty chemical subsidiary that produces cellulose acetate.
In order to create the new company, Aventis, Hoechst and Rhone-Poulenc would be required to divest their combined interest in Rhodia to a level of 5% or less and to sequester that interest pending its divestiture. The FTC said that action would preserve competition in the manufacture, marketing and sale of cellulose acetate thermoplastics.
They would also be required to divest the assets relating to Rhone-Poulenc's direct thrombin inhibitor drug Revasc.
"This settlement is structured to support and complement the relief obtained by the Commission of the European Communities, thus ensuring preservation of vigorous competition in the market for cellulose acetate in the US," said Richard Parker, director of the FTC's Bureau of Competition.
He added that the consent agreement "also serves to ensure continued innovation in the small but growing market for a new type of drug used to treat blood-clotting diseases."
Hoechst stockholders are scheduled to meet Thursday to vote on the merger while Rhone-Poulenc stockholders will meet on 15 December.
By: Mary Ann Tawasha
+1 713 525 2653
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