U.S. sues to stop Norway's Wilhelmsen from buying rival Drew Marine (updated)

Wilh Wilhelmsen Holding ASA

23/02/2018 14:56

(Adds details, background) 
    WASHINGTON, Feb 23 (Reuters) - The U.S. Federal Trade 
Commission said on Friday it would challenge in court the 
Norwegian company Wilhelmsen Maritime Services'  WWI.OL  plan to 
buy smaller U.S. rival Drew Marine Group. 
    The FTC said the $400 million proposed deal would reduce 
competition in the market for marine water treatment chemicals, 
used in a ship's boiler water and engine cooling water systems. 
    If Wilhelmsen closed the deal with New Jersey's Drew Marine, 
the FTC said the company would have 60 percent of the market for 
marine water treatment chemicals, while its closest competitor 
would have 5 percent. 
    "We disagree with the FTC's evaluation and will continue to 
work towards a positive outcome," Wilhelmsen spokeswoman 
Benedicte Teigen Gude told Reuters.  
    She said the deal had been submitted to antitrust enforcers 
in London and Singapore. It had received approval from Britain, 
while Singapore's review was ongoing, she said. 
    The FTC has filed an administrative complaint with an agency 
judge asking for the deal to be scrapped.  
    It also authorized staff to request a preliminary injunction 
in federal court temporarily stopping the deal while the 
administrative process goes forward.  
    In most cases, if the agency wins in federal court, the 
companies cancel their proposed transaction. 
    The deal has a $200 million termination fee, according to a 
statement from Wilhelmsen when the transaction was announced in 
April 2017. 
 
 (Reporting by Diane Bartz; Editing by Bernadette Baum) 
 ((Diane.Bartz@thomsonreuters.com; 1 202 898 8313;)) 
 
Keywords: DREWMARINE M&A/WILHELMSEN