Merger of Hercules, Ashland approved by European Commission

By Lisa Kerner

Charlotte, N.C., Oct. 6 - The European Commission approved the proposed merger of Hercules Inc. and Ashland Inc., concluding that the transaction would not significantly impede effective competition in the European Economic Area.

The two U.S. chemical companies' activities overlap only in the supply of specialty chemicals to the paper industry, according to the European Commission.

In July, Ashland agreed to acquire Hercules in a stock and cash deal valued at $23.01 per Hercules share, or about $3.3 billion including debt.

Under the companies' definitive merger agreement, Hercules shareholders will receive $18.60 per share in cash plus 0.093 shares of Ashland common stock for each share of Hercules common stock, it was previously reported.

Hercules said its shareholders will vote on the merger at a special meeting on Nov. 5.

Ashland is a diversified chemical company based in Covington, Ky.

Hercules manufactures and markets specialty chemicals for making a variety of products for home, office and industrial markets. The company is based in Wilmington, Del.

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