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Carlyle To Sell PQ Unit To Get INEOS Approval

WASHINGTON, June 30 (Reuters) – Carlyle Partners IV, a private equity group, has agreed to sell a sodium silicate plant in order to gain approval to buy INEOS Group Ltd's sodium silicate and silicas business, the Federal Trade Commission said on Monday.

The commission said it challenged the original deal because it would have meant the merger of PQ Corp — the largest sodium silicate producer in the Midwest — with INEOS, No. 3 in the area.

The product is used in cements, passive fire protection and lumber processing.

Under the deal hammered out with the FTC, Carlyle will sell PQ's sodium silicate plant and businesses in Utica, Illinois.

Carlyle said in October it planned to combine PQ Corp and INEOS Silicas to make a global chemical producer. Under the deal, Carlyle would own 60 percent of the company while INEOS would own 40 percent.

Carlyle did not disclose terms of the transaction but said it expected the combined company to have revenues in excess of $1 billion. (Reporting by Diane Bartz; editing by Jeffrey Benkoe)