EU Regulators Poised to Approve DuPont Dow Chemical Merger

5a6af295-f69a-45ea-b197-438445a963bearticleimage.jpeg

23 Feb 2017 --- Questions are being raised about the imminent US$130 billion Dow Chemical and DuPont merger after US media reports are circulating claiming the European Union regulators are on the verge of approving the deal. 

Although DuPont is not yet making any official statement, it is understood EU antitrust regulators are on track to clear the merger.

FoodIngredientsFirst got in touch with DuPont who stressed that they are not commenting further on the merger. 

Shares for both companies spiked yesterday (Wednesday February 22) with DuPont rising 3.5% to 79.80 on the stock market, it’s best level in almost 19 years. Dow Chemical increased 4% to 63.67, also hitting record levels.

Earlier this month DuPont said it would sell part of its Crop Science Unit while Dow Chemical said it would sell its acid copolymers and ionomers business as a way of allaying any competition concerns. 

It could still be several weeks until we hear for sure whether or not EU regulators have cleared the deal as the official deadline is April 4. It is seen as hugely important for the EU to approve the merger even though it must still gain approval from US regulators. 
If approvals are granted and the merger is given the green light, the combined entity plans to separate into different focused companies which includes a crop science business. 

It is believed the fact that both companies have “fine-tuned” proposals to allay any competition fears is a strong signal that approval is on the cards. 

Last month FoodIngredientsFirst reported how DuPont swung into the black with fourth quarter profits of US$263million and full-year profits of US$2.5 billion, but warned that transaction costs associated with its merger with Dow Chemical would hit earnings for the first three months of 2017.

by Gaynor Selby

Related Articles

Food Ingredients News

ADM pursues agro merger with Bunge

22 Jan 2018 --- US agribusiness Archer Daniels Midland (ADM) has approached Bunge about a potential takeover, which could set up a bidding war with Swiss-based rival Glencore Plc. The takeover could combine two of the world's four largest grain trading houses. ADM's approach comes just months after commodities trader Glencore proposed a partnership with Bunge, setting the scene for a bidding war.

Food Ingredients News

Asda and Aldi ban energy drink sales to under-16s

22 Jan 2018 --- Asda and Aldi have announced that they are banning sales of energy drinks to children under 16 from early March. The move comes after Waitrose announced that customers buying drinks after 5 March could be asked to show ID.

Food Ingredients News

Novolyze raises €2.2m investment to fight risk of foodborne illnesses

18 Jan 2018 --- Food safety experts Novolyze has raised €2.2 million in a fundraising round aimed to speed up the pace of the commercial development of its Surronov range of surrogate microorganisms in the US, Europe and Asia.

Food Ingredients News

EU war against plastic waste: 2030 full recyclability targets set

17 Jan 2018 --- The first-ever Europe-wide strategy on plastics, was adopted, as of yesterday, and is a part of the transition towards a more circular economy. The EU is instigating war against plastic waste as part of an urgent plan to clean up Europe’s activities and ensure that every piece of packaging on the continent is reusable or recyclable by 2030.

Food Ingredients News

Organic movement calls for regulation of new genetic engineering techniques

17 Jan 2018 --- During its General Assembly in New Delhi, India late last year, IFOAM – Organics International adopted a global position which reaffirms that GMOs created through new genetic engineering techniques have no place in organic food and farming systems.

More Articles