German specialty chemicals maker Evonik Industries has agreed to sell a plant in Prince George, to address Canadian Competition Bureau concerns about its proposed US$625 million takeover of US-based PeroxyChem.
The Canadian competition regulator found that the deal would result in the loss of a “competitive rivalry” between Evonik’s hydrogen peroxide facility at Gibbons, just north of Edmonton in Alberta, and PeroxyChem’s plant in Prince George, leaving a capacity-constrained manufacturer in Longview, as the only nearby competitors.
Hydrogen peroxide is used mainly as a bleaching agent for pulp and paper or as a treatment chemical in the oil and gas and mining sectors. Because of its bulk, customers prefer to buy it from nearby manufacturers to avoid transportation costs.
The Competition Bureau stated it has investigated and approved the sale of the Prince George facility by Evonik to United Initiators, an unrelated German chemicals manufacturer.
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