LB Foster agrees with DoJ on Portec deal close

(Reuters) - L.B. Foster Co said it entered into an agreement with the antitrust division of the U.S. Department of Justice, under which it would not complete its acquisition of Portec Rail Products Inc before July 16, without the division’s consent.

Rail and construction products manufacturer L.B. Foster had in February said it would buy Portec for about $112 million to expand its rail products business.

In March, the companies had received a request for additional information from the Justice Department’s antitrust division.

Last month, L.B. Foster extended its tender offer for Portec shares to June 1 from April 26.

The companies also said they have extended the drop-dead date for completion of the acquisition to August 31.

A drop-dead date is the last possible date on which a contract must be completed.

Shares of L.B. Foster were down 17 cents at $31.07, while those of Portec were down 2 cents at $11.66 Thursday afternoon on Nasdaq.

Reporting by Divya Sharma in Bangalore; Editing by Aradhana Aravindan