In a statement, the US Justice Department had reached a settlement regarding the merger of Ecolab Inc and Permian Mud Service. The merger has been approved without inclusion of one of the subsidiaries of Permian Mud.
The subsidiary excluded in the deal is Champion Technologies Inc. If the subsidiary was included, the merger would reduce the competition for services unlawfully for deepwater well operations located in the Gulf of Mexico.
According to Ecolab, the deal was pegged at a price of US$2.16 billion back in December. The subsidiary excluded would be sold to Clairant Corp for an undisclosed amount.
Champion Technologies and another subsidiary Nalco Co provide chemical compounds to prevent corrosion and blockages in deepwater equipment wells for oil and gas. The two companies hold 70% of the market share, according to court documents. Aside from this, there are other benefits that the two companies provide for deepwater wells in the Gulf of Mexico.
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