Swedish manufacturer SKF said Tuesday that it has received antitrust approvals in the U.S. and Germany for its pending acquisition of Kaydon Corp. but did modify its requirements for closing the deal due to the federal government shutdown.
SKF said in September that it planned to buy Michigan-based Kaydon, which makes bearings and other industrial products, for $1.14 billion. The deal has been approved by the boards of both companies and was expected to close in the fourth quarter, pending regulatory approval.
Given the U.S. federal government shutdown, SKF said it has waived the condition that the deal be approved by the Committee on Foreign Investment in the United States under U.S. national security regulations. The company anticipates that administrative delays will lengthen the period for clearance, but that it has not been notified of any concerns or issues in the review process.
A representative for SKF could not be reached immediately for further comment.
The company is offering Kaydon shareholders $35.50 per share, a 22 percent premium over its closing stock price prior to the deal being announced. SKF said all other terms and conditions of the tender offer remain unchanged.
Kaydon shares increased 5 cents to $35.52 by midday amid a broader market decline.
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