Dow and Dupont merger gets European Union go-ahead

A close-up shot of a sprayer spraying pesticide
Tim Scrivener
Author

28 March, 2017

There was "specific evidence" that Dow and DuPont would have cut back on the amount they spent on developing innovative products, the European Commission said in an emailed statement.

On February 2, Dow announced an agreement with SK Global Chemical Co., LTD.to divest its global ethylene acrylic acid copolymers and ionomers business.

In a joint statement, both companies praised the EU's decision as a "regulatory milestone" and "a significant step toward closing the merger transaction, with the intention to subsequently spin into three independent publicly traded companies".

The Commission is now conducting in-depth investigations into three other deals, including ChemChina's acquisition of Syngenta, HeidelbergCement and Schwenk's joint takeover of Cemex Croatia, and the proposed merger of Deutsche Boerse and the London Stock Exchange Group.

The moves to sell significant portions of both companies were spurred in part by the EU's concern that the Dow and DuPont deal would disincentivize innovation, specifically for herbicides and pesticides, and create less competition if both companies were allowed to keep all current business assets.

In return for the European Union green light, DuPont will sell large parts of its global pesticides business, including its global research and development organization. It "remains to be seen who they choose".

Did Putin put out a contract on a Russian whistleblower and critic?
The injured bodyguard then pulls out his gun and, while lying on the floor, opens fire on the killer, who died later in hospital. Voronenkov had also spoken out against Russia's annexation of Crimea in March 2014, although he voted for the move at the time .

Kim Kardashian opens up about Paris robbery on reality show
They then grabbed her in the hallway of the stairs. "Am I gonna run down the stairs and, like, either be shot in the back... She also addressed rumours that she staged the robbery in the episode , saying "why would anyone make that up".

Bravo Premieres New Series CYRUS VS. CYRUS: DESIGN AND CONQUER, 5/25
Cyrus: Design and Conquer on Bravo where rooms that are in need of a makeover are overhauled by Tish and Brandi Cyrus. " If Miley was getting married, it would not be in that dress!" added Tish .

DuPont and Dow must now fulfill certain commitments given to the EC. ChemChina has made a $43 billion bid for Syngenta and Bayer is seeking to acquire Monsanto. "We understand that this is a big change for the industry, that there are a lot of moving parts, that the regulators need to make very informed decisions".

Matt Arnold, an analyst for Edward Jones Investments in St. Louis, said the European Union is typically viewed as the toughest jurisdiction for merger reviews.

Dow and DuPont still need to win approval from the US, where the Justice Department is also expected to require divestitures to approve the merger, a person familiar with the matter told Bloomberg news agency. One of the three splintered companies, to be named Dow, would continue to own and run the Freeport complex, as well as DuPont's facilities in Orange, Texas, near the Louisiana border.

The deal still must be approved by regulators in Canada, Brazil, China, Australia, and the United States.

"Through dominant market share and sheer political power, they would unduly influence our agriculture and food system", added the letter, which was dated Monday. "These mergers risk major monopoly outcomes" that might increase prices for farmers and customers.


More news


  • TBI: No credible sightings of Elizabeth Thomas after 7 days

    Cummins is believed to be armed with two handguns and is driving a silver Nissan Rogue with the Tennessee license plate 976-ZPT. The family attorney says that the teacher is looking for a weakness in Elizabeth Thomas , something predators are known for.
    Greenback on the defensive, gold rises

    Greenback on the defensive, gold rises

    As I gain more confidence in the outlook I could support three total this year. The spectre of slower US rate hikes has been helping high-yielding currencies.

    Legendary banker David Rockefeller dies at 101

    He gave tens of millions of dollars to Harvard University, The Rockefeller University and the Museum of Modern Art. Rockefeller was frequently among the wealthiest people in the US who were listed on the Forbes 400 list.
  • Russian Opposition Figure Navalny Detained in Moscow Amid Unlicensed Protest

    Russian Opposition Figure Navalny Detained in Moscow Amid Unlicensed Protest

    Despite the dramatic scenes in Moscow , state TV did not cover the protests, instead showing soap operas and nature films. Protesters then tried to prevent a police van from taking him away.
    Kevin Moran: I would take an Ireland draw against Wales

    Kevin Moran: I would take an Ireland draw against Wales

    Allen was one of few Wales players to stand out and he continues to be the star player of the World Cup qualifying campaign. Needless to say, Taylor received the straight red card from referee Nicola Rizzoli for his awful challenge.

    Mathews' late 3 lifts Gonzaga over West Virginia

    Carter and Miles led the way with 24 and 18 points respectively while senior Tarik Phillip came off of the bench to pump in 12. With just under two minutes to go, the officials decided against West Virginia and Carter getting too comfortable.
  • Cities and monuments switch off for Earth Hour

    Earth Hour means switching off all lights and other appliances for an hour to show support to the movement against global warming. While BSES saved around 208 MW, the Tata Power Delhi Distribution Limited (TPDDL) managed to save around 82 MW this year.

    European Union summit date on Brexit announced

    Time will now be short for Britain to negotiate the terms of its departure and a future trade deal by the deadline of March 2019. Mr Tusk said his priority was making sure the "divorce" was the "least painful" for the EU.

    Major Clashes Reported in Damascus after Anti-government Rebels Infiltrate Tunnels

    The Observatory said the rebel assault sought to relieve allied fighters in the nearby districts of Barzeh, Tishreen and Qabun. The source said that the situation in Jobar region has now normalized.
  • Super Bowl legend Tom Brady's missing jersey found

    Super Bowl legend Tom Brady's missing jersey found

    In the crime world, this might be the equivalent of blowing a 25-point lead in the Super Bowl. According to Houston Police Chief Art Acevedo, it has been found in Mexico.
    Special Olympics Basketball Team Gets Special Send Off To Championship

    Special Olympics Basketball Team Gets Special Send Off To Championship

    Houk, who has been involved with Special Olympics for six years, also likes to run and kayak. Madison Englund is at the top of her game.
    'Mass Effect: Andromeda' Game Ready drivers deliver performance boosts, HDR support

    'Mass Effect: Andromeda' Game Ready drivers deliver performance boosts, HDR support

    Ian Frazier, the lead designer of Mass Effect: Andromeda responded to a tweet in regards to the day one patch for Andromeda . Mass Effect Andromeda will be coming out on the 21st of March in America and later on in Europe on the 23rd of March.