Nalco to Merge with Ecolab

Nalco Holding is to merge with an Ecolab subsidiary under a definitive agreement with Ecolab.

The transaction, which is valued at $8bn, including assumed Nalco net debt, has been approved by the board of directors of both companies.

The transaction is expected to close in the fourth quarter of 2011, subject to regulatory approvals.

Ecolab CEO Douglas M Baker Jr said the merger will help the company broaden its business platform, thereby enhancing its global growth opportunities.

“Through our participation in the water sector and our strategic planning work, we identified water management as a key future growth segment for us, given its growth characteristics and importance to our customers,” he said.