US Federal Trade Commission OKs VeraSun Energy – US Bioenergy merger

In Washington DC, the US Federal Trade Commission gave antitrust approval to the merger of VeraSun Energy and US BioEnergy.

The deal, in which USBE shareholders will receive approximately $680 million of VeraSun stock, will create the world’s largest ethanol producer, with a planned capacity of 1.6 billion gallons by the end of 2008, based on scheduled plant openings.

The combined companies will benefit from economies of scale in operations and finance, and bring access to VeraSun’s advanced investments and technologies to US BioEnergy’s shareholders.

VeraSun CEO Donald L. Endres will remain CEO of the combined company, and US BioEnergy CEO Gordon Ommen will serve as chairman following the closing of the merger. VeraSun Senior Vice President and Chief Financial Officer Danny C. Herron will become president of the combined company.

The combined entity will retain the VeraSun name and trade under VeraSun’s existing NYSE ticker symbol, VSE.

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