European Commission approves Dow, DuPont merger
The European Commission (EC) has granted conditional regulatory clearance in Europe of the proposed merger between DuPont and Dow Chemical.
The European Commission (EC) has granted conditional regulatory clearance in Europe of the proposed merger between DuPont and Dow Chemical. This regulatory milestone is a significant step toward closing the merger transaction, with the intention to subsequently spin it into three independent publicly traded companies.
The EC’s approval is conditional on DuPont and Dow fulfilling commitments given to the EC in connection with the clearance. The companies believe the outcome of the EC review is pro-competitive and maintains the strategic logic and value creation potential of the transaction.
Specifically, DuPont will divest its cereal broadleaf herbicides and chewing insecticides portfolios. DuPont will also divest its crop protection research and development pipeline and organization, excluding seed treatment, nematicides, and late-stage R&D programs, which DuPont will continue to develop and bring to market. DuPont is currently in negotiations to divest the crop protection assets.
Additionally, on February 2, Dow announced an agreement with SK Global Chemical to divest its global ethylene acrylic acid (EAA) copolymers and ionomers business. These divestitures are conditioned on Dow and DuPont closing their merger transaction, in addition to other closing conditions, including regulatory filings, local employment law, and governance.