FTC Seeks Public Comment on BASFs application to extend manufacturing agreement related to 2009 Acquisition of Ciba

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The Federal Trade Commission is seeking public comment on an application by global chemical company BASF SE to extend a manufacturing agreement, entered into in compliance with a 2009 settlement order, which imposed certain requirements on BASF’s acquisition of rival Ciba Holding, Inc.

BASF is requesting FTC approval to extend an agreement with Dominion Colour Corp., which acquired Ciba’s indanthrone blue (IB) high performance pigment business in January 2010. The agency required that the Ciba IB pigment business be sold in order to resolve competition concerns about BASF’s purchase of Ciba. In addition, BASF also was required to enter an agreement – known as a toll manufacturing agreement – to make IB pigment for the acquiring company for up to 30 months to help the acquirer transition production to its own facility.

The FTC approved Dominion as the acquirer of the IB pigment business on December 4, 2009, and also approved the toll manufacturing agreement between BASF and Dominion. The toll agreement will expire in the near future unless it is extended, and the two companies have agreed on an extension. Under the settlement, an extension requires the approval of the FTC.

Copies of BASF’s application can be found on the FTC’s website and as a link to this press release. (FTC File No. 081-0265; Docket No. C-4253; the staff contact is Daniel P. Ducore, Bureau of Competition, 202-326-2526; see press release April 2, 2009.)

The FTC’s Bureau of Competition works with the Bureau of Economics to investigate alleged anticompetitive business practices and, when appropriate, recommends that the Commission take law enforcement action. To inform the Bureau about particular business practices, call 202-326-3300, send an e-mail to antitrust{at}ftc{dot}gov, or write to the Office of Policy and Coordination, Room 394, Bureau of Competition, Federal Trade Commission, 600 Pennsylvania Ave, N.W., Washington, DC 20580. To learn more about the Bureau of Competition, read Competition Counts. Like the FTC on Facebook and follow us on Twitter.

(FYI 39.2011.wpd)

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