Chemicals Mergers: Do Recent Blocked Deals Signal Rough Seas Ahead?

    View Authors October 2016

    A wave of consolidation is sweeping through the chemical industry, and antitrust enforcement agencies are routinely performing extensive investigations of these transactions. Does the US Federal Trade Commission’s recent objection to a US $900 million merger and the parties’ subsequent abandonment of the deal signify turbulent waters for chemical deals flowing through antitrust review?

    In an article published in the October 7 issue of Bloomberg BNA’s Antitrust and Trade Regulation Report, Alicia Batts and Rachel Rasp posit that the failed deal does not spell doom for other chemical mergers; though, they advise prospective merger partners to carefully quantify efficiencies and explain how benefits for the companies would be passed on to consumers.