26 January 2008 01:42 [Source: ICIS news]
HOUSTON (ICIS news)--Hexion Specialty Chemicals and Huntsman will extend the closing date of their $10.6bn (€7.2bn) merger so that it is not expected to close before 3 May and may take longer in order to give regulators more time to review the deal, the companies said on Friday.
Hexion notified Huntsman that it will extend the agreement by 90 days from 5 April to 4 July.
“As a result, the merger is not expected to close before May 3,” Hexion said in a statement.
Huntsman and Hexion had previously announced on 4 October that each had received a request for additional information from the Federal Trade Commission (FTC) to allow it more time to review the merger.
“Huntsman and Hexion also continue to work closely with regulatory agencies in other jurisdictions, including the European Union,” Huntsman said in a statement.
"This extension is not unusual in a transaction of this size involving numerous global locations," said Craig Morrison, Hexion's chairman and CEO. "We are fully cooperating with regulatory agencies and will continue to work closely with Huntsman and the agencies in order to obtain the regulatory approvals required to complete the merger."
Huntsman CEO Peter Huntsman said, "This extension was clearly contemplated by the terms of the merger agreement that we entered into with Hexion last July. We continue to work diligently with Hexion and its advisors to secure the regulatory approvals that are necessary to close the transaction."
($1.00 = €0.68)
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