Olin Corporation has requested Federal Trade Commission approval to divest pool chemical facilities it owns in South Charleston, West Virginia, and in Livonia, Michigan, to SC-L Acquisition Corp., a subsidiary of Israel Chemicals Ltd. (ICL). The application is subject to public comment for 30 days, through May 1.
Olin is based in Stamford, Connecticut, and ICL is the largest chemical group in Israel. The assets to be divested include an isocyanurate manufacturing facility located in South Charleston and a pool sanitizer tabletting and packaging facility in Livonia, both of which were acquired by Olin from FMC in 1985.
Prior FTC approval of the divestiture is required under a 1990 Commission order resulting from the FTC's challenge of the 1985 acquisition. The Commission held that the acquisition could substantially reduce competition in the U.S. market for dry pool- sanitizing chemicals, and required Olin to divest the former FMC assets to an entity that would operate them so as to restore the lost competition. The Commission decision and order was affirmed on appeal by the Ninth Circuit Court of Appeals, and became final in February 1994, when the Supreme Court denied Olin's petition to hear the case.
Olin maintains in its application that this proposed divestiture, along with the proposed divestiture of its SUN Brand products business to Aqua Clear (an application to divest which was announced for public comment on March 10), will ensure their continued competitive viability of the dry pool sanitizing chem- ical assets as required by the Commission order. The application states that ICL is highly integrated and diversified, is expand- ing and diversifying its chemical product line, and has technical and managerial skill in the production and marketing of swimming pool sanitizers and water treatment chemicals. Given these factors, "ICL is by far the best choice among the...bidders," Olin added.
- more -
Comments on the application should be addressed to the FTC, Office of the Secretary, 6th Street and Pennsylvania Avenue, N.W., Washington, D.C. 20580.
Olin also said that shortly it will submit another application for approval to divest its 50 percent interest in Chlor-Chem, stating that this would complete all the divestiture requirements under the order.
Copies of the divestiture application and other documents associated with this case are available from the FTC's Public Reference Branch, Room 130, same address as above.
(FTC Docket No. 9196)