Occidental bid for Vulcan assets gets US approval
Fri Jun 3, 2005 03:43 PM ET
WASHINGTON, June 3 (Reuters) - U.S. antitrust authorities said on Friday they had conditionally approved plans by the chemicals unit of Occidental Petroleum Corp. to buy the chemicals business of Vulcan Materials Co.
The Federal Trade Commission said it would not oppose the deal provided Occidental Chemical divests a Wisconsin chemical plant owned by Vulcan.
"It clears away the last impediment we had to closing the transaction," said Occidental Petroleum spokesman Larry Meriage. "We look forward to concluding this deal in the days ahead."
Vulcan Materials makes crushed stone, gravel and sand used for construction. The assets of Vulcan's chemical business consist of chloralkali plants in three states and a joint venture in Louisiana.
The deal, announced in October, includes $214 million in cash plus payments contingent on the future performance of the businesses being acquired from Vulcan.
The FTC said the Wisconsin plant would be sold to either ERCO Worldwide or another FTC-approved buyer. The agency said the divestment was needed to ensure the deal did not hobble competition in the market for some chemicals.
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