Min­istry ap­proves Dow-DuPont­merger

China Daily (Canada) - - BUSINESS -

China has de­cided to green­light the merger of chem­i­cal gi­ants Dow Chem­i­cal and DuPont af­ter nearly a year of an­titrust in­ves­ti­ga­tions, but asked the two to di­vest some busi­nesses as pre­con­di­tions of the ap­proval. TheMin­istry of Com­merce said on Tues­day in a state­ment that the merger will boost their market shares for some chem­i­cals and limit com­pe­ti­tion in the Chinese market and be­yond. The two com­pa­nies’ dom­i­nance in pes­ti­cides, weed killer and sev­eral other prod­ucts will likely in­crease af­ter the con­sol­i­da­tion of their mar­ket­ing power and R&D divi­sion, which will dampen the rise of com­peti­tors, neg­a­tively im­pact tech­no­log­i­cal ad­vance­ment, and hurt down­stream deal­ers. The min­istry be­lieves the post-merger con­glom­er­ate will con­trol nearly 40 per­cent of China’s weed killer market, 75 per­cent for acid copoly­mers and 100 per­cent for ionomers. per­cent for the six-month MLF and 3.2 per­cent for the oneyear MLF. The MLF tool was first in­tro­duced in 2014 to help com­mer­cial and pol­icy banks main­tain liq­uid­ity by al­low­ing them to bor­row from the cen­tral bank by us­ing se­cu­ri­ties as col­lat­eral.

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