MIDLAND, MI — The Dow Chemical Co. completed its $7.3-billion acquisition of Union Carbide Corp. after agreeing to a Federal Trade Commission (FTC) stipulation that Dow must divest intellectual property related to the production of plastic trash bags. In addition, Dow is required to divest its ethyleneamines, ethanolamines and methyldiethanolamine business, which involves the manufacture of lubricating-oil additives, personal-care products, fabric softeners, herbicides, and fungicides, among other products.

In the stock transaction, Union Carbide becomes a wholly owned subsidiary of Dow, which will remain headquartered in Midland, MI.

The merger was originally announced in August 1999, but completion was delayed by a lengthy federal antitrust review stemming from serious concerns about the deal’s impact on competition. The merger creates the second-biggest U.S. chemical company, behind DuPont. Dow is a major supplier of coatings raw materials, including epoxy and latex resins, solvents, acrylic monomers, polyurethane resins, and a variety of additives. Union Carbide was a major supplier of coatings resins, emulsions, solvents, intermediates and additives.

Dow also announced an agreement to sell its global ethyleneamines business to a subsidiary of Huntsman Corp.; terms were not disclosed. Ethyleneamines are specialty products with applications in lube and fuel additives, epoxy curing agents, agricultural chemicals, fabric softeners, pharmaceuticals, personal-care products, and textile additives, and also are used in the manufacture of polyols and urethane catalysts.

Separately, Dow reportedly will sell its ethanolamines business to Ineos Acrylics UK Ltd. Ethanolamines are used in herbicides, pharmaceuticals and other products.