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The U.S. Federal Trade Commission on Friday cleared K+S AG's (KPLUF) $1.68 billion acquisition of U.S.-based Morton Salt from Dow Chemical Co. (DOW), but the agency required K+S' U.S. subsidiary to sell its bulk de-icing salt assets in Maine and Connecticut as a condition of government approval.

The FTC said the divestitures were necessary to protect competition for de-icing road salt in those two states.

The Morton acquisition, announced in April, makes K+S the world's biggest salt producer.

The German fertilizer supplier has said it plans to leverage Morton's familiar "umbrella girl" brand to expand its salt business in North America and at the same time save on distribution costs between Brazil, Chile and North America.

Dow was required to divest Morton Salt as part of its deal to buy its parent Rohm & Haas Co. (ROH)

K+S spokesman Michael Wudonig confirmed the regulatory clearance from the FTC and said the company was "glad to have earned the approval as expected" at the end of the third quarter.

Wudonig said FTC clearance was the last regulatory hurdle for the acquisition.

Under the terms of its agreement with the FTC, K+S' U.S. subsidiary International Salt Co. will sell its road salt assets in Maine to Eastern Salt Co. and in Connecticut to Granite State Minerals, Inc.

-By Brent Kendall, Dow Jones Newswires; 202-862-9222; brent.kendall@dowjones.com