Bandag Purchase Approved

Bridgestone Americas Holding Inc.’s US$1 billion acquisition of Bandag Inc. has received early approval from the US Federal Trade Commission (FTC). The FTC ended a required 30-day waiting period for the acquisition ahead of schedule, on January 29, announced Bandag in a prepared statement. The 30-day period was not scheduled to end until February 8.

According to the FTC website, early approvals are not granted unless both the FTC and the Justice Department’s antitrust division have completed their reviews and decided against taking any enforcement actions.

Bridgestone Americas Holding, the U.S. subsidiary of Japan-based Bridgestone Corp., announced December 5 that it would acquire Bandag for $50.75 per share in cash, or $1.05 billion. Bandag has stated that the acquisition remains subject to shareholder and other regulatory approvals. Bridgestone’s American depository shares rose 50 cents to close at $42.90, while Bandag shares increased 10 cents to close at $50.75 on the New York Stock Exchange.