EU approves Degussa buy of Dow Chemical unit
Wed May 24, 2006 11:04am ET
BRUSSELS, May 24 (Reuters) - German chemicals firm Degussa AG won approval on Wednesday from the European Commission to acquire the superabsorbent products unit of U.S. peer Dow Chemical Co.
"After examining the operation, the Commission concluded that the transaction would not significantly impede effective competition in the European Economic Area or any substantial part of it," the Commission said in a statement.
Dow said when the deal was announced earlier this year that Degussa would take over a plant in Rheinmunster, Germany. Dow will retain a facility in Midland, Michigan, and make superabsorbent products under contracts for Degussa through the first quarter of 2007.
Dow also said it would look at alternatives for the Midland facility.
The deal also includes a supply agreement for glacial acrylic acid, among a class of components key in manufacturing superabsorbent polymers. Those polymers in turn are used in products such as baby diapers.
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