Quaker Chemical Corporation said it is in productive discussions with the European Commission and the U.S. Federal Trade Commission regarding its merger with Houghton International.
When the acquisition was announced in 2017, Quaker Chemical said it expected the completion of the transaction by the end of 2017 or early 2018, subject to customary closing conditions, including regulatory approvals.
Based on these discussions, Quaker Chemical said it “continues to expect the remedy will involve a divestment of some product lines which, in total, are approximately 3% or less of the revenues of the combined company,” which is consistent with the company’s original projections.
“Quaker is in discussions with potential buyers for the product lines to be divested and intends to present a remedy that meets the needs of both regulatory authorities in the third quarter,” Quaker Chemical said in a statement.
“Based on the information available to date, Quaker expects to receive approval from the regulatory authorities and close the combination in the fourth quarter of 2018.”
“While the regulatory process is taking longer than expected, it is moving in the right direction with constructive discussions with both regulatory authorities. The additional time will allow us to finalize the process with the potential buyers and the regulators. We believe the end result will be a remedy that meets the needs of the market, the regulatory authorities, and the new combination,” said Michael F. Barry, chairman, chief executive officer and president of Quaker Chemical.
Headquartered in Conshohocken, Penn., U.S.A., Quaker Chemical is a leading global provider of process fluids, chemical specialties, and technical expertise to a wide range of industries, including steel, aluminum, automotive, mining, aerospace, tube and pipe, cans, and others.
Houghton International, headquartered in Valley Forge, Penn., U.S.A., is a global leader in delivering advanced metalworking fluids and services for the automotive, aerospace, metals, mining, machinery, offshore and beverage industries. Houghton International is a Hinduja Group Company, which has owned more than 95% of Houghton International since 2012.