EU clears Ashland to buy chemicals maker ISP

BRUSSELS Aug 19 (Reuters) - U.S. specialty chemicals maker Ashland (ASH.N) gained EU approval on Friday for its $3.2 billion purchase of privately held International Specialty Products Inc. to reinforce its range of products.

Ashland, the producer of Valvoline oil, said in May the acquisition is expected to boost annual earnings by 50 percent to $1.1 billion before interest, taxes and depreciation and amortisation. [ID:nL3E7GV1RS]

The European Commission, the EU competition watchdog, said the purchase did not raise significant competition concerns, and the merged company would continue to face competition from a number of rival suppliers.

"The transaction would not raise competition concerns because the companies' activities are largely complementary and the transaction would not significantly modify the structure of the market," the Commission said in a statement. (Reporting by Charlie Dunmore, Editing by Rex Merrifield)