January 15, 2020 / 2:20 PM / 7 days ago

EU clears Synthomer's takeover of Omnova, subject to conditions

BRUSSELS (Reuters) - EU antitrust regulators said on Wednesday they had cleared polymer maker Synthomer Plc’s (SYNTS.L) planned acquisition of U.S. rival Omnova Solutions Inc (OMN.N), subject to conditions.

The approval is conditional on Synthomer’s offer to divest its global VP Latex business to address concerns of the European Commission that competition of vinyl pyridine latex would be reduced. The product is used by tyre manufacturers to make safer and more solid tyres.

“Synthomer and Omnova are the only two manufacturers of this type of latex in Europe but we can approve their merger because the companies offered to divest all of Synthomer’s VP Latex production,” Margrethe Vestager, commissioner in charge of competition, said in a statement.

Synthomer announced its plans to buy Omnova for an enterprise value of $824 million in July to strengthen its global position.

Reporting by Philip Blenkinsop

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