MIDLAND, Mich. (Bloomberg) — Dow Chemical Co. said it expected to complete its $9.9 billion acquisition of Union Carbide Inc. Tuesday, now that U.S. antitrust enforcers have approved creation of the world's second-largest chemical company.
The Federal Trade Commission voted 5-0 to clear the merger after Dow agreed to license a new technology for manufacturing plastic. The FTC said Dow will allow BP Amoco, with which Dow once had a joint venture, to license a new method for making linear low-density polyethylene, used to make trash bags, food wraps and food pouches.
The FTC approval was the last hurdle for the companies to clear in their merger. Dow spokeswoman Leslie Hatfield said the company expected to complete the acquisition Tuesday. If the merger closes as expected, trading in Carbide shares will be suspended before Wednesday's opening of the New York Stock Exchange, she said.
Dow Chief Executive Michael Parker will mark the transaction's close at the New York Stock Exchange Wednesday, the company said in a statement issued Monday.
"The merger increases Dow's scale, breadth and depth, all of which will allow us to continue to create more value for our shareholders," Parker said in the statement.