Glatfelter Terminates Deal to Buy Simpson Clough Mill
June 13, 2006 - Glatfelter yesterday said that its previously announced agreement to acquire J R Crompton Ltd's Simpson Clough mill has been terminated.
J R Crompton Ltd., headquartered in the United Kingdom, has been operating in administration since February 2006. Its administrators terminated the agreement in accordance with contractual provisions due to additional time that may have been required should an in depth regulatory review have been necessary.
In March of this year, Glatfleter announced the completion of its acquisition of Crompton's Lydney mill. However, the deal remains under review by the European Commission, a process with which Glatfelter says it is fully cooperating in.
"We are obviously disappointed with the outcome of the acquisition of the Simpson Clough facility," said George H. Glatfelter II, chairman and chief executive. "We remain committed to delivering the high quality products and services expected by our customers served by the Lydney mill."
Glatfelter said that it believes that the Lydney acquisition complies with European competition law, but it is unable at this time to predict the timing or the likely outcome of any Commission decision.
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