NEW YORK (CNNfn) - W.R. Grace & Co. agreed with Imperial Chemical Industries PLC to terminate the $455 million acquisition of ICI's minerals business following weeks of fruitless negotiations with federal regulators, the Boca Raton, Fla.-based chemicals company said Wednesday.
Grace reached a definitive agreement in April to acquire ICI's Crosfield business, but delayed the closing of the transaction due to antitrust concerns raised by the Federal Trade Commission.
Grace said the agreement was terminated because both parties were unable to obtain clearance.
Grace stock (GRA) was up 1-3/16 at 11-9/16 in early Wednesday trading while ICI shares (ICI) were down 3-1/8 at 33-1/8.
To allay fears, Grace Chairman and Chief Executive Albert J. Costello said he believed third-quarter earnings would meet or exceed analysts' expectations.
Analysts had a consensus estimate of 29 cents a share, according to First Call.
Earnings are expected to be released Oct. 22.