The European Commission has conditionally approved the proposed acquisition of Omnova by Synthomer.
Synthomer plc, based in the UK, and Omnova Solutions, Inc., based in the US, are both manufacturers of speciality chemicals, including vinyl pyridine latex. Mentioned chemical product is used to provide safer and more solid tyres to the automotive industry. Transaction sides are only two manufacturers of this type of latex in Europe and there is a high barrier for trade across regions. Commission has concerns that as a result of transaction, the acquisiton would cause higher price, reduced choice options and lower quality of services provided to customer. To address Commission’s concern, Synthomer offered to divest its global VP Latex business.
The European Commission has approved the transaction within the scope of disposal.