US Justice Dept Clears Cameron-Natco Deal, With Conditions
November 17 2009 - 4:58PM
Dow Jones News
The U.S. Department of Justice on Tuesday cleared Cameron
International Corp.'s (CAM) $980 million acquisition of Natco Group
Inc. (NTG), but required the company to sell certain desalting
assets used in the oil-refining industry.
The department's antitrust regulators said the asset sales were
necessary to preserve competition in the market for refinery
desalters, which are used to remove salt from crude oil at the
oil-refining stage of production.
The department said Cameron and Natco are each other's closest
competitor for a significant set of refinery customers in the
United States.
Under terms of its settlement with the government, Cameron will
divest desalter assets it acquired from Howe Baker Engineers Ltd.
in 2005. It will also divest a non-exclusive license to certain
Natco technologies related to refinery desalters, the Justice
Department said.
Cameron said in a statement that the assets it is selling
represent less than two-hundredths of 1% of the company's 2008
revenue.
Cameron said it plans to close the deal "as soon as practicable"
following approval by Natco's shareholders at a special meeting to
be held on Nov. 18.
-By Brent Kendall, Dow Jones Newswires; 202-862-9222;
brent.kendall@dowjones.com
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