EU antitrust regulators
clear $130 billion Dow, DuPont merger
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[March 27, 2017]
By Foo Yun Chee
BRUSSELS (Reuters) - Dow
Chemical and DuPont gained conditional EU antitrust
approval on Monday for their $130 billion merger by
agreeing to significant asset sales, one of a trio of
mega mergers that will redraw the agrochemicals
European Competition Commissioner Margrethe Vestager
holds a news conference after Dow Chemical gained
conditional EU antitrust approval on Monday for their
$130 billion merger by agreeing to significant asset
sales, one of a trio of mega mergers that will redraw
the agrochemicals industry, in Brussels, Belgium March
27, 2017. REUTERS/Yves Herman
European Commission had been concerned that the merger of two of
the biggest and oldest U.S. chemical producers would have few
incentives to produce new herbicides and pesticides in the
It said the asset sales would ensure competition in the sector
and benefit European farmers and consumers.
"We need effective competition in this sector so companies are
pushed to develop products that are ever safer for people and
better for the environment," European Competition Commissioner
Margrethe Vestager said in a statement.
"Our decision today ensures that the merger between Dow and
DuPont does not reduce price competition for existing pesticides
or innovation for safer and better products in the future."
In return for the EU green light, DuPont will divest large parts
of its global pesticides business, including its global research
and development organization.
Dow in turn will sell two acid co-polymer manufacturing
facilities in Spain and the United States, as well as a contract
with a third party through which it buys ionomers. The company
has already found a buyer South Korea's SK Innovation
Antitrust experts said regulator's demand to sell large swatches
of R&D facilities could set the benchmark for future deals.
Sources said last week that ChemChina's [CNNCC.UL] $43 billion
bid for Syngenta <SYNN.S> could be approved this week but the
timing could slip. Bayer <BAYGn.DE> and Monsanto <MON.N> are set
to ask for EU approval in the coming months.
(Reporting by Foo Yun Chee, editing by Robin Emmott)
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