London - Synthomer plc is selling its vinyl pyridine latex (VP latex) operations to Trinseo SA to meet European Commission conditions for the acquisition of Ohio-based polymer group Omnova Solutions.
The divestment is subject to approval from competition authorities but will not impact the completion of the Omnova transaction, said Synthomer in a trading update 26 March.
The UK-based chemicals company said it expected to complete the Omnova takeover by 1 April.
Representing less than 0.5% of the company's €1.7 billion annual sales, Synthomer’s Pyratex business manufactures VP latex which is is primarily used by tire manufacturers to improve safety and performance.
Synthomer's divestment includes the full transfer of the required technology, brands, manufacturing equipment, and other intangibles assets to a supplier with the proven knowledge regarding the relevant chemistry.
In its conditional approval of Omnova's takeover on 15 Jan, the European Commission said the market for the supply of VP latex in the European Economic Area (EEA) was highly concentrated, as Synthomer and Omnova were the only players with production capacity in the region.
The market, the Commission also noted, is characterised by “high barriers to trade” across regions.
Synthomer supplies speciality chemicals for use in a variety of applications, such as medical gloves, paper, carpet, bedding and footwear. Its activities are mainly concentrated in Europe.
Beachwood, Ohio-based Omnova specialises in chemicals for a variety of applications, such as oil and gas, plastics and rubber. The company’s activities are mainly concentrated in the US.
The transaction, according to Synthomer, creates “a global speciality chemicals company,” and a “major world-wide player in water-based polymer solutions.”
In addition, the acquisition will expand Synthomer’s reach in North America as well as the Chinese market.