On October 26, 2007 the FTC filed a complaint challenging Owens Corning’s proposed acquisition of the US assets of Compagnie de Saint-Gobain used in the production of glass fiber reinforcements and composite fabric material. Among the assets sought to be acquired are those used to manufacture continuous filament mat (CFM) products, which include non-electrical laminates, marine parts and accessories, and other products requiring CFM’s unique strength and durability.

The FTC’s complaint charges that the planned acquisition would violate Section 5 of the FTC Act and Section 7 of the Clayton Act, as amended, by significantly lessening competition in the market for the development, manufacture, and sale of CFM products and technologies. The complaint further alleged that Owens Corning and Saint-Gobain account for more than 90 percent of CFM products sold in North America, and that entry into the market by new producers would not be timely, likely or sufficient to counteract the harm to competition posed by the acquisition.

Pursuant to the terms of a proposed consent order resolving the FTC’s charges, Owens Corning will divest its North American assets used for production of CFM products including related licenses and intellectual property. Such assets will be sold to South Carolina-based AGY Holding Company within 10 days of completing the acquisition. The vote to approve the consent order will occur on November 26, 2007, following a 30-day period for public comment.