EU clears Koch's $13 billion takeover of paper company Georgia-Pacific

<p>EU regulators cleared Koch Industries Inc.'s $13.2 billion takeover of paper-products giant Georgia-Pacific Corp. on Tuesday, a deal that would create the United States' largest private company.</p><p>The European Commission said its investigation showed the tie-up would not cause competition problems in Europe.</p><p>Regulators looked at the business both companies did as rivals and in the supply chain. As pulp producers, they have a small combined market share on the global market and do not compete directly in Europe, it said.</p><p>Koch supplies pulp to Georgia-Pacific to make tissue paper, but the Commission ruled out problems because Koch had a small market share and plenty of rivals offering customers a choice of other suppliers.</p><p>The cash deal agreed to in November also calls for Koch to assume $7.8 billion in Georgia-Pacific debt and will result in the Atlanta-based company becoming a wholly owned subsidiary of Koch.</p><p>Koch, based in Wichita, Kan., is a commodities conglomerate that operates refineries and pipelines, trades commodities and manufactures pulp, paper and fibers. With combined annual revenue of about $80 billion after the Georgia-Pacific acquisition, Koch would surpass food and farm products maker Cargill Inc. as the largest privately held company in the U.S. Koch employs more than 30,000 people.</p><p>Georgia-Pacific's brands include Brawny paper towels, Angel Soft tissue, Dixie paper cups and Quilted Northern bath tissue. The company also makes building products such as plywood, lumber and gypsum wallboard.</p><p>The deal marks the first major push into consumer products for Koch, which traces its history to 1927 when Fred C. Koch developed a new method to refine crude oil. Today it operates in fields from ranching to fertilizer to petroleum processing and asphalt. Chairman and CEO Charles G. Koch and his brother, David, a company board member and executive vice president, are both worth $4 billion, according to the Forbes ranking of the world's wealthiest people.</p><p>___</p><p>On the Net:</p><p>HASH(0x1cd9f14)</p><p>HASH(0x1cd9fbc)</p>