© Reuters. FILE PHOTO – The logo for DuPont de Nemours, Inc. is seen on the trading floor at the New York Stock Exchange (NYSE) in Manhattan, New York City, U.S., August 3, 2021. REUTERS/Andrew Kelly
BRUSSELS (Reuters) – The European Commission has approved the proposed $11 billion acquisition of Dupont’s mobility and materials business by U.S. chemicals company Celanese (NYSE:) Corp, on the condition that the latter divests a plastics-producing business.
Celanese announced the deal in February but had to offer remedies to address EU antitrust concerns.
The combined entity would have been the largest producer of thermoplastic copolyester (TPC) in the European Economic Area and globally, with only a few alternative suppliers remaining. The product is primarily used by automakers.
The EU approval is conditional on Celanese divesting its global TPC business, including its production facility in Italy and certain brands.
Celanese has proposed selling the business to Italian engineering plastics producer Taro Plast S.p.a.
“The commitments offered by Celanese, divesting a stand-alone business, fully remove our competition concerns as they ensure that a player will remain in the market,” the Commission’s competition policy head Margrethe Vestager said in a statement on Wednesday.
DuPont (NYSE:) is remoulding its portfolio to focus on high-margin electronics and water solutions businesses.
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