DuPont-Dow Merger Gets Nod From US AntiTrust Regulator

16 Jun 2017 --- Dow and DuPont have received antitrust clearance from US Department of Justice for the proposed merger of equals which means the two global chemical companies have cleared another hurdle and allayed the regulators competitive concerns.

With antitrust regulators clearing the way, the deal is looking like it could be completed by August.
 
“We are very pleased that the DOJ has approved this transaction,” said Andrew Liveris, Dow's chairman and chief executive officer. "With the DOJ clearance, we have taken a significant step forward in bringing together these two iconic enterprises, and in the subsequent intended separation into three leading, independent innovation-based science companies that will generate significant benefits for all stakeholders."

Ed Breen, chair and chief executive officer of DuPont, added: “With this review completed, we are on track to close our procompetitive merger in a manner that maintains the strategic logic and value creation potential of the transaction.”

Divestment Conditions
In connection with the proposed agreement and consistent with commitments already made to obtain the European Commission’s regulatory approval, DuPont will divest certain parts of its crop protection portfolio and Dow will divest its global Ethylene Acrylic Acid copolymers and ionomers business. 
 
The proposed agreement with the DOJ, which remains subject to court approval, does not require the companies to make any additional divestitures. With this agreement, no further approvals are required in the U.S. for the merger to close.
 
“Going forward, the intended subsequent spin-offs are expected to unlock significant value for shareholders, as we execute our plan for each company to be a growth-oriented leader in attractive segments where global challenges are generating strong demand for their distinctive offerings.”
 
According to both companies the merger transaction is expected to generate cost synergies of approximately US$3 billion and growth synergies of approximately US$1 billion.
 
This latest US approval follows clearance for Dow and DuPont is many jurisdictions, including approvals in Europe, Brazil and China. 

The companies say they are working constructively with regulators in the remaining jurisdictions to obtain clearance for the merger and are making progress in fulfilling the requirements of the conditional approvals that have already been received.