Trane, Ingersoll-Rand merger granted one more approval

By Lisa Kerner

Charlotte, N.C., April 10 - The European Commission approved the proposed acquisition of Trane Inc. by Ingersoll-Rand Co., Ltd.

According to the commission, the merger would not "impede effective competition in the European Economic Area or any substantial part of it."

While there is a vertical issue concerning refrigerant compressors, Trane's activities with regard to refrigerant compressors are very limited, the commission said.

It was previously reported that Ingersoll-Rand agreed to acquire Trane (formerly American Standard Cos. Inc.) for approximately $10.1 billion, including transaction fees and the assumption of some $150 million of Trane net debt.

The Federal Trade Commission and the Antitrust Division of the U.S. Department of Justice granted early termination of the Hart-Scott-Rodino waiting period in the proposed merger, it was announced on Feb. 1.

Under the companies' definitive agreement, Trane shareholders will receive $36.50 in cash and 0.23 of a share of Ingersoll-Rand common stock for each Trane share held. The total consideration is $47.81 per share based on Dec. 14 closing stock prices.

Trane provides heating, ventilation and air conditioning systems, dehumidifying and air cleaning products and advanced building controls to commercial and residential markets. The company is based in Piscataway, N.J.

Ingersoll-Rand is a diversified industrial firm based in Hamilton, Bermuda.

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