EU clears merger of Dow, DuPont

BRUSSELS: The EU on Monday approved a $ 130 billion megamerger of US agri- chemicals giants Dow Chemical and DuPont, paving the way for major consolidation in a sensitive sector for farmers and the environment.

The decision by antitrust regulators was subject to DuPont selling “major parts” of its global pesticide business, said the European Commission.

“Due to significant commitments on products and the worldwide research and development organization, the merger of Dow and DuPont can be approved,” EU Commissioner for Competition Margrethe Vestager said.

Dow Chemical and DuPont, two of the oldest US companies, announced their tie- up in December 2015 to create the world’s biggest chemical and materials group.

The companies are dominant players in a huge range of chemical products, but the manufacturing of pesticides and fertilizers has drawn the most attention.

The products developed by the Dow and DuPont “affect each and everyone of us. They literally affect our daily bread,” Vestager told a news conference in Brussels.

The merger is part of a broader wave of consolidation in the agro- chemicals sector with the EU expected to decide on the $ 43 billion takeover bid by ChemChina for Swiss rival Syngenta in the coming days.

To win approval, the companies agreed to sell off key DuPont pesticide units, including sensitive research and development capabilities.

Opponents to the deals warned that the tie- ups would deepen threats to the environment, punish farmers worldwide with higher prices and give a boost to the controversial genetically modified crops industry.

In the coming months, the EU is expected to also decide on German giant Bayer’s $ 66 billion offer for US firm Monsanto, another mega merger in the industry that has angered activists.