The merger of Dow Chemical and DuPont, two of the world’s largest chemical companies, cleared a major hurdle on Thursday after the companies reached a proposed settlement with US antitrust regulators to address competitive concerns.
The proposed settlement over the agreed $142bn deal would resolve a lawsuit that was filed publicly on Thursday, in which the US Justice Department said it was concerned about the impact of the merger on competition in the market for crop-protection chemicals, as well as two chemical products used to make flexible food packaging, among other industrial applications.
Approval is conditioned on the divestiture of some assets, including parts of DuPont’s crop-protection portfolio and Dow’s global ethylene acrylic acid copolymers and ionomers business. The companies said in a joint statement on June 15 that those commitments are consistent with measures undertaken to secure EU approval, and that they will not have to make any additional divestitures under the US settlement.
The merger was first agreed to in 2015, after both companies faced pressure from activist investors.
Full Content: The Financial Times
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
Redfin Settles $9.2M Commission Inflation Lawsuits
May 7, 2024 by
CPI
DOJ Supports Colorado’s Efforts to Block Kroger-Albertsons Merger
May 7, 2024 by
CPI
Japan Considers Regulation of AI Developers
May 7, 2024 by
CPI
European Commission Extends Decision Deadline for Ita-Lufthansa Merger
May 7, 2024 by
CPI
UK, US and Australia Sanction Senior Leader of LockBit Cybercrime Gang
May 7, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Economics of Criminal Antitrust
Apr 19, 2024 by
CPI
Navigating Economic Expert Work in Criminal Antitrust Litigation
Apr 19, 2024 by
CPI
The Increased Importance of Economics in Cartel Cases
Apr 19, 2024 by
CPI
A Law and Economics Analysis of the Antitrust Treatment of Physician Collective Price Agreements
Apr 19, 2024 by
CPI
Information Exchange In Criminal Antitrust Cases: How Economic Testimony Can Tip The Scales
Apr 19, 2024 by
CPI