Celanese Drops Blackstone Acetate Tow Merger
US-based Celanese has announced it is giving up on plans to merge its acetate tow business with Blackstone’s after European regulators demanded what it termed “excessive” divestments to allay antitrust concerns.
“We worked hard and offered serious remedies to the European Commission and believed we had solved all competition issues. Unfortunately, demands by the European Commission eliminated the advantages at the heart of the transaction,” said Celanese’s CEO, Mark Rohr.
The EU opened an in-depth investigation into the transaction last October and issued a statement of objections in January. Regulators were concerned that a merger would leave the remaining two major competitors – Eastman Chemical and Daicel – unable to exert sufficient competitive pressure. Celanese and Blackstone offered concessions, but obviously not enough to appease the authorities.
Announced in June 2017, the deal would have combined the second and third largest suppliers of acetate tow, which is used for cigarette filters. Celanese would have owned 70% of the new business with Blackstone holding 30%. Annual revenues would have been $1.3 billion.
Competition approval, without any divestments, had already been granted in Mexico, Turkey, China and Russia.
Celanese said it would discuss alternative plans for its cellulose derivates business during its investor day, scheduled for May 1.
