VeraSun, US BioEnergy merger clears waiting period hurdle; deal on track to close in first quarter

By Lisa Kerner

Charlotte, N.C., Jan. 2 - The Federal Trade Commission granted early termination of the Hart-Scott-Rodino waiting period in the proposed merger of VeraSun Energy Corp. and US BioEnergy Corp., it was announced on Wednesday.

The merger, slated for completion in the first quarter of 2008, remains subject to approval by shareholders of both VeraSun and US BioEnergy.

Following the merger, the combined company will operate under the VeraSun name with nine operating ethanol production facilities and another seven under construction.

It was previously reported that under the merger agreement, 0.81 of a share of VeraSun common stock will be issued for each outstanding share of US BioEnergy common stock, a premium of some 11% based on Nov. 23 closing prices.

VeraSun chairman, chief executive officer and president Donald L. Endres will lead the combined company. US BioEnergy president and CEO Gordon Ommen will become chairman.

US BioEnergy is a St. Paul-based producer and marketer of ethanol and distillers grains.

VeraSun, based in Brookings, S.D., produces renewable fuel.

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