EU Clears Dow-DuPont Deal With Conditions
March 27 2017 - 6:59AM
Dow Jones News
By Natalia Drozdiak
BRUSSELS--Dow Chemical Co. (DOW) and DuPont Co. on Monday
clinched regulatory approval for their mega-merger from the
European Union's competition watchdog on the condition the
companies divest several businesses to address antitrust
concerns.
The European Commission said the companies had committed to sell
parts of DuPont's global pesticide business and associated research
and development, as well as Dow's acid copolymers and ionomers
business.
The EU said it initially had concerns the deal would reduce
competition on price and choice for pesticides as well as harm
innovation when it comes to improving existing products and
developing new active ingredients. But the commitments address
those concerns in full, the EU said.
"Our decision today ensures that the merger between Dow and
DuPont does not reduce price competition for existing pesticides or
innovation for safer and better products in the future," said EU
antitrust chief Margrethe Vestager.
The Dow-DuPont merger, announced in December 2015, would unite
the two giants, creating a business with a combined market
capitalization of roughly $120 billion, before splitting into three
separate companies.
Write to Natalia Drozdiak at natalia.drozdiak@wsj.com
(END) Dow Jones Newswires
March 27, 2017 06:44 ET (10:44 GMT)
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