Georgia Gulf, PPG Industries to close chem merger by end January

21 December 2012 14:13  [Source: ICIS news]

LONDON (ICIS)--Georgia Gulf and PPG Industries are on track to complete the planned $2.1bn (€1.6bn) merger of their commodity chemicals businesses by the end of January 2013, the US-based producers said on Friday.

The companies said that PPG received a “favourable private letter ruling” from US tax authorities regarding the tax effects of the separation of its commodity chemicals business and its subsequent merger with that of Georgia Gulf.

That ruling, which allows for the merger to be structured as a “Reverse Morris Trust” under US tax law, was a key condition of the planned deal announced in July.

In a next step, PPG now intends to commence its exchange offer to split off its commodity chemicals business, with the closing of the exchange offer and merger expected to occur in late January 2013.

Georgia Gulf shareholders are due to vote on the deal at a special meeting on 10 January 2013.

($1 = €0.76)

By: Stefan Baumgarten
+1 713 525 2653

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