Dow Chemical and DuPont are set to win EU antitrust approval for their $130 billion merger, two people familiar with the matter said on Wednesday, one of three mega deals in the agrochemicals industry.
The deal, which still needs approval from U.S. and other regulators, has faced intense scrutiny from the European Commission. Of particular concern is combining the two companies’ agricultural businesses which sell seeds and crop protection chemicals, including insecticides and pesticides.
The EU competition enforcer had expressed concerns about whether the merged company would still be incentivized to produce new herbicides and pesticides in the future.
This month, DuPont offered to sell a portion of its crop protection business and related research and development, while Dow agreed to sell its acid copolymers and ionomers business to South Korea’s SK Innovation (096770.KS) if the merger goes ahead.
The companies fine-tuned their concessions after the Commission received feedback from rivals and customers last week.
“These were very minor tweaks,” one of the people said.
The Commission will not seek third parties’ views on the changes, a clear sign that it will approve the deal, the source said.
Full Content: Reuters
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