Posted 1/20/2011 03:55 pm
Updated 2 years ago
The Antitrust Division of the U.S. Department of Justice has cleared ABB's proposed $4.2 billion acquisition of Baldor Electric Co. of Fort Smith, announced in November.
This antitrust clearance comes after two extensions -- the latest announced Thursday morning -- of Swiss company ABB's tender offer, which will expire at 4 p.m. CST Jan. 25.
The two companies said Thursday's clearance satisfies "the last remaining regulatory condition to the tender offer." But the closing of the tender offer remains subject to other customary terms and conditions.
The two companies said they expect the merger to close no long after the tender offer closes on Jan. 25.
In December, the two firms reported that the Justice Department had requested more information and documents as it reviewed the deal.
Under the terms of the agreement, unanimously approved by both companies' boards of directors, publicly traded ABB (NYSE: ABB) will pay $63.50 per share in cash. That's a 41 percent premium over the closing price for Baldor stock (NYSE: BEZ) before the deal was announced.
The merger will put ABB in the U.S. for the first time. ABB said it will retain the Baldor brand, the company's Fort Smith headquarters and its management, excluded Baldor's retiring CEO, John McFarland.
The announcement marks the biggest deal involving an Arkansas-based company since the sale of Alltel to Verizon announced in June 2008.