Regulators expect competition will counter combined strength in plastics additives markets

The European Commission has cleared Crompton’s planned acquisition of flame retardant and polymer additives major Great Lakes Chemical. Clearance was given despite certain overlaps in the companies’ polymer additives activities, according to an EC statement.

The Commission identified potential competition issues due to the companies’ combined strengths in organophosphorus-based additives and UV stabilisers. The regulators concluded, however, that strong competition from other US and Asian producers should limit the merger’s impact on these markets.

Crompton has previously unveiled Chemtura as the new name for the company to be formed from its E1.3bn acquisition of Great Lakes. The new company will have sales of E3bn and be capitalised at around E2.4bn.

In the polymer sector, Chemtura will combine Great Lakes’ broad additives portfolio, including the former FMC business in Manchester, UK, with Crompton’s strong position in plastics additives, rubber chemicals, EPDM and urethane prepolymers.