Dow, DuPont Receive Conditional Approval from European Commission for Proposed Merger of Equals

DuPont and The Dow Chemical Co. announced that the European Commission (EC) has granted conditional regulatory clearance in Europe of the companies’ proposed merger of equals.

This regulatory milestone is a significant step toward closing the merger transaction, with the intention to subsequently spin into three independent publicly traded companies. The transaction is expected to create significant cost synergies of approximately $3 billion with the potential for $1 billion in growth synergies. Longer term, the intended three-way split is expected to unlock even greater value for shareholders and customers and more opportunity for employees as each company will be a leader in attractive segments where global challenges are driving demand for their distinctive offerings.

The EC’s approval is conditional on DuPont and Dow fulfilling commitments given to the EC in connection with the clearance. The companies believe the outcome of the EC review is pro-competitive and maintains the strategic logic and value creation potential of the transaction.

Specifically, DuPont will divest its Cereal Broadleaf Herbicides and Chewing Insecticides portfolios. DuPont will also divest its Crop Protection research and development pipeline and organization, excluding seed treatment, nematicides, and late-stage R&D programs, which DuPont will continue to develop and bring to market, and excluding personnel needed to support marketed products and R&D programs that will remain with DuPont. DuPont is currently in negotiations to divest the crop protection assets.

Additionally, on February 2, 2017, Dow announced an agreement with SK Global Chemical Co., LTD. to divest its global Ethylene Acrylic Acid (EAA) copolymers and ionomers business. These divestitures are conditioned on Dow and DuPont closing their merger transaction, in addition to other closing conditions, including regulatory filings, local employment law and governance.

Following the divestiture of a portion of DuPont’s crop protection business, the Agriculture Division of the merged company will retain strong crop protection assets, including an excellent portfolio in corn and soy broadleaf and grass control, a robust cereal weed control portfolio, DuPont’s strong position in disease control, and Dow AgroSciences’ industry leading insecticide portfolio. The Agriculture division will be well positioned to accelerate growth, leveraging strong pipelines in both seeds and chemistry to better serve growers around the world with a superior portfolio of innovative solutions, greater choice, and competitive price for value.

The companies continue to work constructively with regulators in the remaining relevant jurisdictions to obtain clearance for the merger, which they are confident will be achieved.

Additional information is available at www.dowdupontunlockingvalue.com.

Topics: , , ,

Industry News

Americas

Vive Crop Protection CEO Named to CropLife America Board

Vive Crop Protection announced that Vive Crop Protection CEO, Keith Thomas, has been elected to CropLife America’s Board of Directors for a three-year term.

Asia

Kleffmann Group Strengthens APAC/Australia Operations

Kleffmann's business is showing a double-digit increase in 2017 compared to the previous year both for AMIS panels and Ad hoc research.

Industry News

Acadian Plant Health Hires New Business Development Manager for Brazil

Acadian Plant Health (APH) recently hired Daniel Gheller for the position of Business Development Manager in the Brazil region. Within

Asia

Sumitomo, BASF Sign Agreement to Develop New Fungicide

Sumitomo Chemical and BASF, two of the world’s leading chemical companies, announced today their entry into a collaboration agreement for

Forbes Mixing Bowl
Industry News

6 Key Takeaways from Forbes Mixing Bowl NYC

Advisory investment group The Mixing Bowl teamed up with Forbes for its New York-based event this year to discuss technology’s

Industry News

DuPont Agriculture Executive Outlines 2017 Growth Strategy 

DuPont Executive Vice President James C. Collins discussed priorities for the company’s agriculture business segment at the Bank of America

Industry News

CropLife America Meets with Delegation from Chinese Ministry of Agriculture

A delegation of pesticide program officers organized by the Institute for the Management of Agrochemicals, China Ministry of Agriculture, met

Industry News

Arysta LifeScience, Hokko Strengthen U.S. Partnership

Arysta LifeScience North America recently announced Hokko Chemical Industry Co., Ltd. (Hokko) has established a North American representative office out

Industry News

Arysta LifeScience Announces Increase in R&D Pipeline Value

Arysta LifeScience, a Platform Specialty Products company, announced  an increase in the value of its research and development (R&D) pipeline

Industry News

Platform Specialty Products Posts Record Net Sales for 2016

Platform Specialty Products, owner of Agriphar and Arysta, released third quarter and year-end results for 2016, showing a net sales increase

Industry News

Climate Corporation’s Mike Stern Receives 2017 Agribusiness Leader of the Year Award

  The National Agri-Marketing Association has named Mike Stern, Chief Executive Officer of The Climate Corporation, a subsidiary of Monsanto

Industry News

Novozymes Advanced Enzymes Increase Ethanol Yields, Plant Profits

Novozymes announces the launch of the Spirizyme T Portfolio, an advanced suite of glucoamylase enzymes with trehalase and other yield enhancing

Industry News

SipcamRotam to Launch the First Registered, Post Patent Premixes of Mesotrione

Following the successful launch of Bellum herbicide containing Mesotrione, SipcamRotam is now launching two new mesotrione based premixes into the

Industry News

EPA Approves DuPont’s FeXapan Dicamba Herbicide Plus VaporGrip Technology

DuPont Crop Protection has received federal approval from the U.S. EPA for use of DuPont FeXapan herbicide plus VaporGrip Technology on Roundup

Industry News

Bayer, Yara Develop Software to Provide Digital Farming Tools

Bayer and Yara International ASA (Yara) have entered into a software collaboration and technology license agreement to provide farmers worldwide

Industry News

Dow AgroSciences, MS Technologies Receive Patent for Gene Insertion in Enlist E3 Soybeans

Dow AgroSciences LLC, a subsidiary of The Dow Chemical Company, and MS Technologies obtained a patent covering soybean plants and seeds

Industry News

Acadian Plant Health Hires First Director of Product Life Cycle Management

Acadian Plant Health (APH) recently announced that Shane Hand had been hired to fill a newly-formed position within the organization.

World Agri-Tech Innovation Summit Panel 2016
Industry News

World Agri-Tech Innovation Summit to Be Held in San Francisco, Mar. 28-29

“Breakthrough Applications and Business Models for Sustainable Farming” is the theme of the World Agri-Tech Innovation Summit to be held

Industry News

Certis Europe and Spiess Urania to Distribute Latitude Products

Mitsui & Co., Ltd has finalized the agreement to acquire all the assets related to Monsanto’s Latitude business, including trademarks,

Latest News

Agrichemicals

Seed Firms’ Changes Bring Uncertainty, Promises

The months ahead will reveal what these altered players will look like and how they’ll work with dealers and growers. They’ll also show where companies are focusing efforts in trait development and crop systems.

Asia

Naidu: India Needs Multi-Pronged Approach to Agriculture

Indian Vice President M Venkaiah Naidu has called for a comprehensive, multi-pronged approach to agriculture with focus on crop diversification

Agrichemicals

AMVAC’s Trogele: ‘Entire Downstream Channel of Our Industry Will Be Challenged’

AMVAC Chief Operating Officer Bob Trogele offered his insight on the current agrichemical environment, and on how retailers can possibly engage with post-patent companies.

Agrichemicals

Albaugh Enters Collaboration on New Wheat Varietites

Colorado Wheat Research Foundation, Inc., Albaugh, LLC and Limagrain Cereal Seeds, LLC have announced the release of the first two new herbicide-tolerant CoAXium Wheat Production System varieties.

Agrichemicals

Monsanto, Farm Groups Sue California Over Glyphosate Warning Requirement

Monsanto Co. says it has joined a coalition of U.S. farm groups in a lawsuit against the state of California to stop a requirement for cancer warnings on products containing glyphosate.