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Evonik Agrees to Sell Hydrogen Peroxide Plant
January 28, 2020
2 Min Read
Evonik agreed to sell a facility to remedy antitrust concerns in Canada as part of its acquisition of PeroxyChem. Image courtesy of Evonik
Canada’s antitrust regulator, Competition Bureau Canada, issued a statement Tuesday that German specialty chemicals firm Evonik has agreed to sell a facility in British Columbia to satisfy competition concerns stemming from its proposed purchase of American hydrogen peroxide producer PeroxyChem.
“Following an extensive review, the Bureau concluded that Evonik’s acquisition of PeroxyChem was likely to result in a substantial lessening of competition in the supply of hydrogen peroxide in Western Canada,” the Competition Bureau said.
Evonik agreed to sell a PeroxyChem hydrogen peroxide manufacturing plant in Prince George, BC. The company suggested United Initiators (UI) as a possible buyer in the agreement. The Competition Tribunal commissioner of the Competition Tribunal determined that UI was an “acceptable buyer” after a review.
“Industries such as pulp and paper, oil and gas, and mining rely on hydrogen peroxide in their day-to-day operations,” said Jeanne Pratt, senior deputy commissioner of the Competition Bureau, in the statement. “We’re pleased to reach this agreement with Evonik to preserve competition in the supply of this chemical to customers in Western Canada.”
The Competition Bureau’s announcement comes a day after a federal judge denied a preliminary injunction to halt the deal filed by the U.S. Federal Trade Commission, Reuters reported. Regulators filed the lawsuit due to concerns that the acquisition could lead to higher prices for hydrogen peroxide in the U.S.
Evonik announced plans to acquire PeroxyChem in November 2018. Based in Philadelphia, PeroxyChem provides H₂O₂and PAA to a wide range of industries including food processing, pharmaceutical and cosmetics, chemicals and polymers, oil and gas production and pulp and paper.
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