25 May 2012 13:05 [Source: ICIS news]
LONDON (ICIS)--The European Commission has cleared Eastman Chemical’s bid to acquire fellow US-based chemical producer Solutia, it announced on Friday.
The Commission's investigation concluded that the transaction would not raise competition concerns because the parties are not active in the same markets, and will continue to face sufficient competition.
The Commission said it examined the competitive effects arising from the vertical relationship between Eastman's upstream supply of 2-ethylhexanoic acid and Solutia's downstream supply of plasticizers for use in polyvinyl butyral sheet.
It found that the merged entity would continue to face competition from a number of strong competitors upstream, and would not result in any substantial change in the markets concerned.
In January, it was announced that Eastman Chemical had bid to acquire Solutia in a $27.65/share cash and stock offer valued at $4.7bn (€3.8bn). The acquisition would broaden geographical reach and accelerate growth, the companies said. Completion of the deal is expected in mid-2012.
($1 = €0.80)
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