EU approves $130bn Dow-DuPont merger

Margrethe Vestager

The European Commission approved the proposed $130 billion merger of US-based chemical companies Dow and DuPont “conditional in particular on the divestiture of major parts of DuPont’s global pesticide business, including its global R&D organisation.”

Commissioner Margrethe Vestager, in charge of competition policy, said: “Pesticides are products that matter – to farmers, consumers and the environment.

“We need effective competition in this sector so companies are pushed to develop products that are ever safer for people and better for the environment.

“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.”

The Commission said it had concerns that the merger as notified would have reduced competition on price and choice in a number of markets for existing pesticides and would have reduced innovation.

“The commitments submitted by Dow and DuPont address these concerns in full,” said the Commission.

“The parties will remove the overlap in markets, where concerns were raised, by divesting the relevant DuPont pesticide businesses.

“They will also divest almost the entirety of DuPont’s global R&D organisation.

“The Commission concluded that the divestment package enables a buyer to sustainably replace DuPont’s competitive effect in these markets and continue to innovate, for the benefit of European farmers and consumers.

“As regards certain petrochemical products, where both companies are important players, the parties will divest relevant assets in Dow’s petrochemical business to preserve effective competition.”

About the Author

Mark McSherry
Dalriada Media LLC sites are edited by veteran news journalist Mark McSherry, a former staff editor and reporter with Reuters, Bloomberg and major newspapers including the South China Morning Post, London's Sunday Times and The Scotsman. McSherry's journalism has also appeared in The Washington Post, The Guardian, The Independent, The New York Times, London's Evening Standard and Forbes. McSherry is also a professor of journalism and communication arts in universities and colleges in New York City. Scottish-born McSherry has an MBA from the University of Edinburgh and a Certificate in Global Affairs from New York University.