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Evonik to sell BC hydrogen peroxide plant as part of $625M acquisition of PeroxyChem

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Evonik to sell BC hydrogen peroxide plant as part of $625M acquisition of PeroxyChem

January 29, 2020 - 16:07
Posted in:

GATINEAU, QC, Jan. 28, 2020 (CNW) -The Competition Bureau announced today that it reached an agreement with Evonik Industries AG to address competition concerns related to its proposed acquisition of PeroxyChem Holding Company LLC.

Following an extensive review, the Bureau concluded that Evonik's acquisition of PeroxyChem was likely to result in a substantial lessening of competition in the supply of hydrogen peroxide in Western Canada.

To remedy this concern, Evonik has agreed to sell PeroxyChem's hydrogen peroxide manufacturing facility located in Prince George, British Columbia and related assets to a buyer acceptable to the Commissioner of Competition.

Under the agreement registered with the Competition Tribunal, Evonik has proposed United Initiators (UI) as the buyer of this facility. The Commissioner reviewed UI's suitability and concluded that they are an acceptable buyer.

The Bureau is satisfied that this agreement will preserve competition in Western Canada's hydrogen peroxide market.

For more information on the Bureau's review, consult our comprehensiveposition statement.

Quote

"Industries such as pulp and paper, oil and gas, and mining rely on hydrogen peroxide in their day-to-day operations. We're pleased to reach this agreement with Evonik to preserve competition in the supply of this chemical to customers in Western Canada."

Jeanne Pratt
Senior Deputy Commissioner of Competition

Quick Facts

  • On November 7, 2018, Evonik signed an agreement with One Equity Partners, the owner of PeroxyChem, to acquire PeroxyChem for US$625 million.
  • The Bureau's Merger Intelligence and Notification Unit became aware of the proposed transaction by way of a complaint from a customer in the pulp and paper industry shortly thereafter.
  • The Bureau worked closely with the U.S. Federal Trade Commission (FTC) throughout its merger review, as the merging parties' production facilities located in Western Canada supply both Canadian and American customers.
  • Evonik, headquartered in Essen, Germany, is a global specialty chemical manufacturer that produces a wide range of chemicals, including hydrogen peroxide.
  • UI is a global specialty chemicals manufacturer based in Pullach, Germany.