February 3, 2020 / 4:04 PM / 21 days ago

Evonik completes PeroxyChem takeover after FTC lawsuit dismissed

FILE PHOTO: The logo of German specialty chemical company Evonik Industries AG is pictured at their plant in Bitterfeld, Germany, February 29, 2016. REUTERS/Fabrizio Bensch/File Photo

FRANKFURT (Reuters) - Evonik said it will close its acquisition of the U.S. company PeroxyChem after the responsible court in Washington D.C. dismissed a lawsuit filed by the Federal Trade Commission (FTC) seeking to block the acquisition.

“The acquisition unlocks additional growth opportunities for us, especially in the market for environmentally friendly disinfectants,” Christian Kullmann, chairman of Evonik’s executive board, said in a statement on Monday.

A federal judge last week ruled that Evonik’s proposed $625 million purchase of PeroxyChem was legal under antitrust law.

The FTC had sued to stop the planned merger in August, citing concerns that it would lead to higher prices for hydrogen peroxide used as a bleaching agent or disinfectant.

Hydrogen peroxide is used primarily as a bleaching agent in the paper industry and also as a disinfectant for food processing or for wastewater treatment.

Writing by Ludwig Burger and Edward Taylor; Editing by Christoph Steitz

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