Dow, DuPont Clear Antitrust Scrutiny

Dow Chemical Co. and DuPont Co. won U.S. antitrust approval for their $73 billion merger, clearing one of the last hurdles to a deal that would create a global chemicals giant.

The assets the companies agreed to sell to win U.S. approval didn’t go beyond agreements with other jurisdictions. DuPont will sell some of its herbicide and insecticide products; Dow will unload a plastics packaging unit, according to a settlement filed in federal court.

The so-called merger of equals is among other mega-deals that could reshape the global agrochemicals industry. Bayer AG is seeking approval to buy Monsanto Co., and China National Chemical Corp.’s agreement to buy Syngenta AG is almost complete. If cleared, the transactions would consolidate the industry into four major players, including BASF SE.

Some farmers dislike the deals because they say the combined companies’ control of pesticide and seed markets might increase prices.

The companies expect to close the deal in August. The new company will be named DowDupont Inc.

Source: Bloomberg