U.S. conditionally backs Carpenter Tech, Latrobe deal
WASHINGTON (Reuters) - Specialty alloy producer Carpenter Technology Corp (CRS.N) has won U.S. antitrust approval to buy rival Latrobe Specialty Metals on condition that it sell facilities to make two specialty alloys, the Federal Trade Commission said on Wednesday.
Carpenter announced in June that it would buy Latrobe for about $388 million in stock.
The FTC, which works with the Justice Department to enforce antitrust law, said it approved the merger on condition that Carpenter sell assets used to make two alloys used in aerospace applications - MP159 and MP35N - to metals maker Eramet S.A. (ERMT.PA)
"Carpenter and Latrobe are the only competitors in these highly concentrated markets. The acquisition will eliminate actual, direct, and substantial competition between Carpenter and Latrobe, and likely result in higher prices for both of the MP Alloys," the FTC said in the analysis of its proposed consent agreement.
Latrobe's customers typically include forgers, machine shops and distributors who further process the specialty metals and alloys, which end up being used by the U.S. Army Aviation and Missile Command and Textron (TXT.N), among others.
(Reporting By Diane Bartz; Editing by Tim Dobbyn)
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