Dow, DuPont merger hear­ing next month

The Star Early Edition - - NEWS - Sandile Mchunu

THE COM­PE­TI­TION Tri­bunal will hold a hear­ing on August 4 into the pro­posed merger be­tween agro­chem­i­cal gi­ants Dow and DuPont.

The tri­bunal was con­cerned about how the merger would af­fect com­pe­ti­tion.

It has re­quested fur­ther in­for­ma­tion from the Com­pe­ti­tion Com­mis­sion about the mar­ket for maize seed in South Africa, and specif­i­cally about a li­cens­ing rem­edy that the par­ties have pro­posed in re­sponse to the com­mis­sion’s concerns.

Dow is the par­ent com­pany of the Dow Group, which is ac­tive in the de­vel­op­ment, pro­duc­tion and dis­tri­bu­tion of plas­tics, chem­i­cals, agri­cul­tural prod­ucts, and en­ergy prod­ucts and ser­vices.

DuPont de­vel­ops, pro­duces, dis­trib­utes and sells chem­i­cals, poly­mers, agro­chem­i­cals, seeds and food in­gre­di­ents.

At the be­gin­ning of this month, the com­mis­sion con­di­tion­ally ap­proved the merger.

The com­mis­sion’s head of com­mu­ni­ca­tions, Sipho Ng­wema, said ear­lier this month: “Al­though there is no di­rect over­lap aris­ing in re­spect of the com­mer­cial­i­sa­tion of hy­brid and ge­net­i­cally mod­i­fied hy­brid maize seed in South Africa, since Dow does not have maize-seed com­mer­cial op­er­a­tions in the coun­try the com­mis­sion found that the pro­posed trans­ac­tion will likely re­sult in the re­moval of po­ten­tial com­pe­ti­tion.”

Dow in­di­cated that it had plans to en­ter the South African com­mer­cial maize-seed mar­ket.

“The com­mis­sion is re­quired to con­sult a num­ber of po­ten­tial en­trants/li­cencees in this mar­ket and to sub­mit an ad­di­tional re­port to the tri­bunal. The hear­ing of the mat­ter will con­tinue on August 4,” the com­mis­sion said.

The com­pa­nies were will­ing to ad­dress the concerns re­lat­ing to maize seed.

“Dow will make avail­able 81 maize hy­brids and seven maize in­bred lines to other third par­ties for li­cens­ing of these hy­brids and in­breds in South Africa,” the group said.

The com­mis­sion was of the opin­ion that this would en­sure that smaller maize-seed pro­duc­ers would be able to li­cense and in­tro­duce new hy­brids.

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