PPG Industries announced last week that it has received a favorable private letter ruling from the U.S. Internal Revenue Service regarding the previously announced separation of its commodity chemicals business and subsequent merger of a newly formed company owning the commodity chemicals business with a subsidiary of Georgia Gulf Corp.
The receipt of the ruling was a closing condition of the transaction with Georgia Gulf. As a result, PPG now intends to soon begin its exchange offer to split off its commodity chemicals business, with the closing of the exchange offer and merger expected to occur in late January 2013. The terms of the exchange offer will be released upon commencement of the offer.