LONDON—Synthomer P.L.C. is selling its vinyl pyridine latex operations to Trinseo S.A. 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 March 26
The United Kingdom-based chemicals company said it expected to complete the Omnova takeover by April 1.
Representing less than 0.5 percent of the company's €1.7 billion annual sales, Synthomer's Pyratex business manufactures VP latex which primarily is 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 Jan. 15, the European Commission said the market for the supply of VP latex in the European Economic Area was highly concentrated, as Synthomer and Omnova were the only players with production capacity in the region.
The market, the Commission also noted, is characterized by "high barriers to trade" across regions.
Synthomer supplies specialty chemicals for use in a variety of applications, such as medical gloves, paper, carpet, bedding and footwear. Its activities mainly are concentrated in Europe.
Beachwood, Ohio-based Omnova specializes in chemicals for a variety of applications, such as oil and gas, plastics and rubber. The company's activities are mainly concentrated in the U.S.
The transaction, according to Synthomer, creates "a global specialty 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.