15th Jan 2020 14:37
(Alliance News) - Chemicals firm Synthomer PLC on Wednesday said its acquisition of Omnova Solutions Inc received regulatory approval from the European Commission.
Following a phase one investigation, the watchdog found the tie-up did not create any competition concerns, Synthomer said.
Synthomer must divest a latex business in Germany however, though the company said the asset represented just 0.5% of its total sales in 2018.
Synthomer said: "Whilst financially immaterial, the sale process must be finalised prior to the closing of Synthomer's acquisition of Omnova.
"Synthomer has already received a number of expressions of interest for this business and will now proceed with the sale process, with completion of the acquisition of Omnova expected late in the first quarter of 2020."
The deal still needs the approval of regulators in Turkey, Synthomer added.
Specialty chemicals firm Omnova's shareholders backed the USD824 million takeover by Synthomer "overwhelmingly" in a vote in October. Synthomer is paying USD10.15 per share for the New York-listed company.
Synthomer shares were trading 2.2% lower at 326.40 pence each in London on Wednesday afternoon.
By Eric Cunha; [email protected]
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