Dow-DuPont Merger Secures EU Approval
The European Union has approved the $130 billion merger of Dow Chemical Co. and DuPont with the condition that portions of DuPont’s global pesticide business and its global research and development initiatives be sold, as well as Dow’s acid copolymers and ionomers business be divested.
The conditions for approval were included due to the EU’s concern that the merger would dampen innovation, particularly in the areas of herbicides and pesticides, and would have a negative impact on competition.
A significant portion of DuPont’s herbicide business will be sold including herbicides for cereals, oilseed rape, sunflowers, rice, and pastures, while insecticides designed for chewing and sucking insects for fruit and vegetables, will also be divested. The exclusive license to DuPont’s product for rice cultivation in the European Economic Area will also be diverted to satisfy less pressing concerns over fungicides.
Dow has agreed to divest two manufacturing facilities in Spain and the U.S. that produce acid copolymers and will eliminate a third-party contract for ionomers that it markets to its customers.