WASHINGTON, April 8 The U.S. Justice Department
said on Monday it had reached a settlement with chemical
companies Ecolab Inc and the privately held Permian Mud
Service Inc, allowing their proposed merger to move forward
without one of Permian's subsidiaries.
Without the sale of subsidiary Champion Technologies Inc,
the merger would unlawfully reduce competition for services to
deepwater wells in the Gulf of Mexico, the department said.
The deal was valued at $2.16 billion, Ecolab said in
Champion and an Ecolab subsidiary, Nalco Co, both provide
chemicals to prevent equipment corrosion and blockages in
deepwater oil and gas wells in the Gulf, as well as other
benefits, the department said in a court filing.
The two companies have a combined 70 percent of that market,
the Justice Department said in a court filing.
The Permian subsidiary will be sold to Clariant Corp, the