Valhi Inc. late Friday said it was walking away from the $367 million sale of its Waste Control Specialists subsidiary to EnergySolutions.
The announcement came two days after a federal judge blocked the merger following a 10-day antitrust trial in April to May in which the Department of Justice argued that combining the two primary providers for low-level radioactive waste (LLRW) disposal in 36 states, the District of Columbia, and Puerto Rico would reduce competition, increase customers’ costs, and impair innovation in the business.
Judge Sue L. Robinson, of U.S. District Court for Delaware, is expected to release her full opinion in the case this week.
“While Valhi disagrees with the Court’s decision, the parties have determined they will not appeal the decision to the Third Circuit Court of Appeals,” Valhi said in a press release. “On June 22, 2017, Andrews County Holdings, Inc., a subsidiary of Valhi, provided written notice to Rockwell Holdco, Inc. (“Rockwell”), the parent company of EnergySolutions, terminating the purchase agreement for the sale of WCS to Rockwell effective June 22, 2017.”
Waste Control Specialists operates a storage complex for LLRW and other waste types in West Texas; it constitutes the entirety of Valhi’s waste management business. Valhi also does business in titanium dioxide production, real estate managment, and other sectors.
The failure of the sale leaves Waste Control Specialists’ future in question. Attorney Van Beckwith, representing WCS, said during trial that the company had incurred $130 million in losses over the preceding five years and faced another $200 million in losses, according to Law 360. Without the merger, Beckwith added, the storage facility could be closed and covered.
That would put a final stop to Waste Control Specialists’ plans to add interim storage of spent reactor fuel from U.S. nuclear power reactors to its offerings. The company applied for a Nuclear Regulatory Commission permit last year, but in April asked the agency to suspend review of the application pending completion of the EnergySolutions deal.
