Regulators clear Dow Chemical-DuPont merge

Associated Press

BRUSSELS

The European Union approved the proposed merger of Dow Chemical and DuPont on Monday, declaring itself satisfied with commitments the companies have made to divest businesses.

Both plan to join in a $62 billion deal and then break apart into three separate, publicly traded companies. Those companies would focus on agriculture, material science, and the production and sale of specialty products.

EU antitrust chief Margrethe Vestager said the bloc’s conditional approval ensures that the merger “does not reduce price competition for existing pesticides or innovation for safer and better products in the future.”

The 28-nation bloc had raised concerns over the merger in the form originally proposed, but the EU’s executive Commission said that “the commitments submitted by Dow and DuPont address these concerns in full.”

The companies will sell the DuPont pesticide businesses and “almost the entirety of DuPont’s global R&D organization,” the Commission said. Part of Dow’s petrochemical business also will be sold – manufacturing facilities in Spain for acid copolymers and a contract through which it sources ionomers.