South Africa Conditionally Approves Dow, DuPont Merger

The Competition Commission of South Africa announced its conditional approval of Dow Chemical Co. and DuPont Co.’s $130-billion merger.

The decision follows recent conditional approvals from global antitrust authorities in Canada and Mexico and from the U.S. Department of Justice on June 15.

In order to address concerns relating to competition and maize seed, Dow will make available 81 maize hybrids and 7 maize inbred lines to other third parties for licensing of these hybrids and inbreds in South Africa. Secondly, Dow is required to register its PowerCore and Enlist biotechnology traits in South Africa within two years of approval of the merger.

“These conditions ensure that other smaller maize seed producers will be able to license and introduce new and different hybrids into South Africa and from this, access to the germplasm materials of Dow, which is situated in other regions such as Argentina. This will likely improve maize seed varieties available to South African farmers, other than from the current two main suppliers being DuPont and Monsanto,” the Commission said in a statement.

The Commission added: “On biotechnology traits, the conditions also ensure that other maize seed producers will have alternative traits to license other than those of Monsanto, which will likely improve choice as well as the prices available for traits in South Africa.”

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