US: Dow-DuPont merger subject of September hearing by Senate Judiciary Committee

The merger between The Dow Chemical and DuPont is the topic of a hearing in September requested by one concerned US senator.

US Sen. Chuck Grassley, R-Iowa, serves as the chairman of the Senate’s Judiciary Committee and recently called for a hearing on the merger, and its effect on the seed and chemical industry. Details were not finalized for the hearing, set for late September, and it is unclear who will represent the two chemical companies at the hearing.

According to a statement on Grassley’s website, the hearing will “focus on the transactions currently being reviewed by antitrust regulators, and the current trend in consolidation of the seed and chemical industries.”

“The seed and chemical industries are critical to agriculture and the nation’s economy, and Iowans are concerned that this sudden consolidation in the industry could cause rising input costs in an already declining agriculture economy,” Grassley said in a statement.

The $130 billion “merger of equals,” as it has been dubbed, would result in a combined company to be known as DowDuPont. It would then spin off into three independent, publicly traded companies within 18 to 24 months after the merger is closed, and is subject to regulatory and board approval.

In addition to the Senate Judiciary Committee, the merger is being scrutinized by the Department of Justice and the European Union.

Full Content: Midland Daily News

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