DuPont-Dow merger clears another hurdle with DOJ approval
DuPont and The Dow Chemical Company have reached a proposed agreement with the Antitrust
Division of the United States Department of Justice (DOJ) that will permit the companies to proceed with their proposed merger.
DuPont will divest certain parts of its crop protection portfolio and Dow will divest its global Ethylene Acrylic Acid copolymers and ionomers business.The proposed agreement with the DOJ, which remains subject to court approval, does not require the companies to make any additional divestitures.
With this agreement, no further approvals are required in the U.S. for the merger to close.
Dow and DuPont have gotten clearance in many other jurisdictions worldwide, including approvals in Europe, Brazil and China. The companies are working with regulators in the remaining jurisdictions requiring approvals. They expect to close the merger in August and expect spinoffs to occur within 18 months afterwards.
“We are very pleased that the DOJ has approved this transaction,” said Andrew Liveris, Dow’s chairman and chief executive officer, yesterday. “With today’s DOJ clearance, we have taken a significant step forward in bringing together these two iconic enterprises, and in the subsequent intended separation into three leading, independent innovation-based science companies that will generate significant benefits for all stakeholders.”
Ed Breen, chair and chief executive officer of DuPont, said, “With this review completed, we are on track to close our pro-competitive merger in a manner that maintains the strategic logic and value creation potential of the transaction. Going forward, the intended subsequent spin-offs are expected to unlock significant value for shareholders, as we execute our plan for each company to be a growth-oriented leader in attractive segments where global challenges are generating strong demand for their distinctive offerings.”