FTC Approves Solvay's Application to Terminate Supply Agreement with Alventia; FTC Seeks Public Comments on Application by Dow Chemical Company to Modify Contract with Arkema Inc.

FTC Approves Solvay’s Application to Terminate Supply Agreement with Alventia

The Federal Trade Commission has approved an application by chemical company Solvay S.A. to end a 1998 agreement to supply Alventia LLC with a chemical known as HCFC-142b, a raw material for making fluoropolymer, which is used in pipes, cable, and other applications.

In 2002, the FTC negotiated a consent order with Solvay to resolve competitive concerns stemming from Solvay’s proposed acquisition of another chemical company. The FTC order required Solvay to sell its interest in Alventia – which consisted of a joint venture that manufactured fluoropolymers – but to continue to supply Alventia with HCFC-142b after the divestiture.

In March 2010, Solvay requested approval to end its HCFC-142b supply agreement with Alventia. According to Solvay’s petition to the FTC, Alventia no longer buys the material from Solvay, and both companies have agreed to end the supply agreement.

Following a public comment period, the FTC has approved Solvay’s request to terminate the supply agreement by a vote of 5-0. (FTC File No. 021-0067, Docket No. C-4046; the staff contact is Daniel P. Ducore, Bureau of Competition, 202-326-2526; see press release dated May 2, 2002, at http://www.ftc.gov/opa/2002/05/solvayausimont.shtm.)

FTC Seeks Public Comments on Application by Dow Chemical Company to Modify Contract with Arkema Inc.

The Federal Trade Commission is seeking public comments on an application submitted by The Dow Chemical Company to modify a software licensing agreement with Arkema Inc. Arkema uses the software in the latex polymers business Dow divested to it in January 2010, to comply with Dow’s obligation under an FTC Order to divest that business. The Commission approved the original licensing agreement in connection with the approval of Dow’s divestiture of the latex polymers and other businesses to Arkema. Under the terms of the Order, Dow is required to obtain FTC approval of any modifications to contracts related to divestitures required by the Order.

The FTC is seeking public comments on the application for 30 days, until August 30, 2010. Comments should be sent to: FTC, Office of the Secretary, 600 Pennsylvania Ave., N.W., Washington, DC 20580. (FTC Docket No. C-4243; the staff contact is Roberta Baruch, Bureau of Competition, 202-326-2861; see press release dated January 23, 2009, at http://www.ftc.gov/opa/2009/01/dow.shtm.)

Copies of the documents mentioned in this release are available from the FTC’s website at http://www.ftc.gov and from the FTC’s Consumer Response Center, Room 130, 600 Pennsylvania Avenue, N.W., Washington, DC 20580. Call toll-free: 1-877-FTC-HELP.