European Union Clears Great Lakes Merger
Thursday June 16, 9:08 am ET
European Union Clears Great Lakes and Crompton Chemicals Merger
BRUSSELS, Belgium (AP) -- The European Union on Thursday cleared Connecticut polymer producer Crompton Corp. to acquire specialty chemicals company Great Lakes Chemical Corp.
Regulators allowed the merger because there is strong competition in the industry from other U.S. and Asian producers.
Middlebury, Conn.-based Crompton is buying Indianapolis-based Great Lakes for about $1.55 billion in stock in a deal that would create a leader in plastics and petroleum additives, flame retardants and pool chemicals. In addition to the stock, Crompton will assume about $250 million in Great Lakes debt in the deal.
Together the two companies will form a new entity called Chemtura. Chemtura will be 51-percent owned by Crompton shareholders and 49 percent by Great Lakes shareholders. It will be the third-largest U.S. specialty chemicals company.
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