European Commission clears DuPont-Dow merger
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The European Commission has granted conditional regulatory clearance for the merger of DuPont and Dow Chemical. The approval is a significant step toward closing the merger transaction and dividing the two companies into three independent, publicly traded companies.
DuPont and Dow must now fulfill certain commitments given to the EC. Specifically, DuPont will divest its cereal broadleaf herbicides and chewing insecticides portfolios.
DuPont will also divest its crop protection research and development pipeline, excluding seed treatment, nematicides, and late-stage R&D programs. The personnel needed to support marketed products and R&D programs will also remain with DuPont. The company is currently in negotiations to divest the crop protection assets.
On February 2, Dow announced an agreement with SK Global Chemical Co., LTD. to divest its global ethylene acrylic acid copolymers and ionomers business.
These divestitures are conditioned on Dow and DuPont closing their merger transaction. Following the divestiture of a portion of DuPont’s crop protection business, the Agriculture Division of the merged company will retain crop protection assets, including a portfolio in corn and soy broadleaf and grass control and a cereal weed control portfolio, plus DuPont’s disease control and Dow AgroSciences insecticide portfolio.
Additional information is available at: www.dowdupontunlockingvalue.com
