US antitrust regulators said 26 October 2007 they had cleared Owens Corning Inc.“s USD 640 million acquisition of Saint-Gobain“s glass reinforcement and composite materials business, with conditions…
US antitrust regulators said 26 October 2007 they had cleared Owens Corning Inc.“s USD 640 million acquisition of Saint-Gobain“s glass reinforcement and composite materials business, with conditions. The Federal Trade Commission said that Owens Corning has agreed to sell its continuous filament mat (CFM) assets to AGY Holding Company, based in Aiken, South Carolina, as a condition of approval. CFM is a fiberglass reinforcement product used to strengthen marine parts, laminants and other products, the agency said. Owens Corning will sell plants in Huntingdon, Pennsylvania and Anderson, South Carolina, pursuant to the agreement with the FTC. The company had previously announced the sale of the Huntingdon plant. Jeffrey Schmidt, director of the FTC“s competition bureau, said that without the divestiture Owens Corning would control over 90% of the CFM market and hinder competition. Under a separate agreement with European Union competition authorities, Owens Corning agreed to sell two plants in Belgium and Norway, the FTC said. Owens Corning said in announcing the deal in July 2007 that the purchase would give the company a greater presence in Russia, China and Mexico. The deal is expected to close by the end of 2007.