EU Clears Dow-DuPont Deal With Conditions

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 [e-mail]

(END) Dow Jones Newswires

March 27, 2017 06:44 ET (10:44 GMT)

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