Chinese regulators have conditionally approved the proposed merger between DuPont and Dow Chemical.
It is the second major victory for the $130 billion merger, which was approved by the European Unionearlier this year. In a joint statement, the companies said the approval puts the deal on track to close some time in August.
China’s Ministry of Commerce agreed to approve the deal provided the companies follow through the divestitures it had promised the European Union. DuPont is selling part of its crop protection business along with its associated research, excluding seed treatment, nematicides and late-stage R&D programs. Dow has agreed to part with its acid copolymers and ionomers businesses.
In addition, Dow and DuPont have made commitments related to the supply and distribution of certain herbicide and insecticide ingredients and formulations for rice crops in China for five years after the merger has closed.
“China is a critical market for both Dow and DuPont and will be for the three intended independent companies that will be created following the merger,” Dow and DuPont said in a statement.
Full content: Reuters
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