Business
European Commission clearance for OMNOVA
European Commission clearance for OMNOVA.
About this update from Synthomer Plc
[{"type":"text","content":"\n \n \n RNS Number : 7010H\n Synthomer PLC\n 26 March 2020\n \n \n \n \n Synthomer plc\n \n \n 26th March 2020 \n \n \n \n \n \n Synthomer plc ('Synthomer') \n \n \n \n \n \n European Commission clearance for OMNOVA acquisition; \n \n Trading update and suspension of dividend\n \n Synthomer is pleased to announce today that the conditions attached to the European Commission's clearance decision issued on 15th January 2020 have been satisfied and no other regulatory approvals are outstanding for the completion of the acquisition of OMNOVA Solutions Inc (\"OMNOVA\"). The acquisition is expected to complete by 1st April 2020. This follows receipt of approval for the agreed sale of its PYRATEX™ VP Latex business to Trinseo. Completion of the divestment to Trinseo, which represents less than 0.5% of Synthomer 2019 sales, is subject to approval from competition authorities but this does not impact the completion of the OMNOVA transaction.\n \n The transaction creates a global speciality chemicals company with significant scale and a robust platform from which to invest in future growth. Synthomer becomes a major world-wide player in water-based polymer solutions with greater customer reach and strong operational capabilities and will be in an excellent position to invest in growth, innovation, and people. \n \n \n The acquisition materially strengthens Synthomer's presence in North America, as well as increases its presence in Europe and Asia, including further penetration into the high growth Chinese market. Synthomer intends to utilise best practices from across the enlarged Group to improve productivity and reduce costs. \n \n Since announcing the transaction in July 2019, Synthomer has done as much as possible before completion with strong cooperation between respective teams meaning that it is ready to move forwards on integration whilst mindful of the current environment. As previously announced, and confirmed today, the acquisition is expected to result in estimated recurring pre-tax cost synergies of US$29.6 million per annum following completion. \n Trading update\n To date, the Group has experienced a solid start to the year with trading in line with 2019 and expectations set out at the time of Synthomer's FY results. Demand has been especially strong in our Nitrile Latex business.\n Whilst the impac...