EU Opens Antitrust Probe on Dow Chemical, DuPont Merger
August 11 2016 - 12:50PM
Dow Jones News
By Valentina Pop and Natalia Drozdiak
BRUSSELS--The European Union's antitrust authority on Thursday
opened a full-blown investigation into plans by Dow Chemical Co.
and DuPont Co. to merge, prompted by concerns the deal would reduce
competition in the global agricultural sector.
The European Commission said it would probe whether the deal
would cut competition in areas such as crop protection, seeds and
certain petrochemicals. Announced December, the proposed merger
aims to create an American industry giant with a combined market
capital of about $122 billion.
"The livelihood of farmers depends on access to seeds and crop
protection at competitive prices. We need to make sure that the
proposed merger does not lead to higher prices or less innovation
for these products," said European Competition Commissioner
Margrethe Vestager.
In-depth antitrust probes are common for large merger proposals
in Brussels and don't necessarily mean a deal will be blocked. If
the EU confirms its concerns, the companies can decide to offer
concessions, such as selling assets, to meet the regulator's
requirements. If those aren't deemed sufficient, Brussels can block
the deal.
Write to Valentina Pop at valentina.pop@wsj.com and Natalia
Drozdiak at natalia.drozdiak@wsj.com
(END) Dow Jones Newswires
August 11, 2016 12:35 ET (16:35 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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