Newpark Resources Inc (NR)

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Newpark cancels business sale to CCS
Monday November 24, 12:00 pm ET
Newpark cancels sale of environmental business to CCS after federal lawsuit to block deal


THE WOODLANDS, Texas (AP) -- Newpark Resources Inc., an oilfield services company, said Monday it has mutually agreed to cancel a proposed sale of its environmental services business a month after the federal government sued to halt the transaction.
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Newpark said it agreed with CCS Inc. to cancel the proposed sale of its environmental services business, which helps manage and dispose of radioactive and industrial waste. The Federal Trade Commission sued in October to block the sale, criticizing the deal as possibly anticompetitive.

"While the company disagrees with the conclusions reached by the FTC, CCS has advised us that they no longer wish to pursue the matter in the courts," Paul Howes, Newpark president and chief executive, said in a statement.

Canada-based CCS provides waste and environmental services. It agreed in April to buy Newpark's environmental business for $85 million in cash.

The decision to abandon the deal is the second setback for Newpark, which negotiated the sale with CCS after another potential buyer, Trinity ALM Acquisitions, failed to secure financing.

CCS did not immediately respond to a call seeking comment.

Shares of Newpark rose 15 cents, or 4.3 percent, to $3.67 in midday trading. The stock earlier hit a new year low of $3.03. Its previous 52-week low of $3.04 was set on Friday.