DOWDUPONT: European Commission initiates “Phase II review of proposed merger of equals / Companies confident that deal will conclude this year
The proposed USD 130 bn merger between Dow (Midland, Michigan / USA; www.dow.com) and DuPont (Wilmington, Delaware / USA; www.dupont.com) continues to take one hurdle at a time. After gaining the approval of their respective shareholders in July (see Plasteurope.com of 22.07.2016), the companies on 11 August said the European Commission had initiated a “Phase II review of the proposed merger.
The EC’s decision is rooted in concerns about competition and innovation in the business fields in which the companies are active, prime among them crop protection, seeds and petrochemicals. Now that the deadline has been extended, the EC expects to conclude its investigation into the proposed merger on 20 December.
In a common statement, Dow and DuPont said they expected a “thorough review, adding that they are “working closely with relevant regulators, including the EC. The companies reiterated their expectation that the deal will close by the end of this year. The EC is not the only body to have requested more information on the proposed merge. In February the US Department of Justice issued a second request for information, and Dow and DuPont first informed the Chinese authorities of the deal in May.
