Brussels, Oct 6 - Ashland Inc, which makes chemicals and Valvoline motor oil, won permission from EU competition authorities on Monday to buy Hercules Inc in a deal that would significantly boost its product offerings.
The European Commission's examination "showed that the overlaps between the activities of Ashland and Hercules are limited and that the merged company would continue to face several strong, effective competitors," the EU executive said in a statement.
"The Commission therefore concluded that the transaction would not raise competition concerns," the statement said.
The deal between the two American companies received the go-ahead from the U.S. Federal Trade Commission on Aug. 11.
Ashland makes composite polymers, adhesives, metal casting consumables, lubricants and automotive chemicals. Hercules mainly manufactures specialty chemicals for the pulp and paper industry, water-soluble polymers and wood rosin derivatives.
The acquisition will give Ashland a major presence in the water treatment arena that primarily services the pulp and paper industry. It would also increase the company's portfolio of specialty additives and ingredients.