Dow-DuPont merger gets conditional OK from European regulators

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 The Dow-DuPont merger has been granted conditional approval for their merger from the European Commission.

Under the agreement, believed to be the last big hurdle for the merger, some crop protection research areas at  DuPont to be sold. 

DuPont employs about 5,000 in Delaware. 

DuPont would not comment on the impact of the agreement on employment. However, a  number of DuPont sites would be affected.

It is believed that the Stine side of the Stine-Haskell research site near Newark will be divested, with the buyer, under European Union guidelines, investing in the facility. 

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Stine-Haskell  was also the site of a planned $35 million soybean research site that was put on hold during cutbacks at DuPont  that led to the loss of 1,700 jobs and a restructuring of ag research.

 The merger transaction is expected to generate cost savings of approximately $3 billion with the potential for $1 billion in additional sales. 

Following the merger, DuPont and Dow will split off into three publicly traded companies. 

Two of the businesses, including DuPont and Dow’s agricultural business, will be based in Delaware. 

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, a release stated. 

The EC’s approval is conditional on DuPont and Dow fulfilling commitments given to the EC in connection with the clearance. 

DuPont will divest its Cereal Broadleaf Herbicides and Chewing Insecticides portfolios. 

According to a release, DuPont will also divest its Crop Protection research and development pipeline and organization, excluding seed treatment, nematicides, and late-stage research and development  programs, which DuPont will continue to develop and bring to market.  

The sale would also exclude personnel needed to support marketed products and R&D programs that will remain with DuPont. DuPont is currently in negotiations to

  The sale would also exclude personnel needed to support marketed products and R&D programs that will remain with DuPont. DuPont is currently in negotiations to sell the crop protection assets.

In early  February 2, 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

The  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,  the release stated. 

Following the divestiture of a portion of DuPont’s crop protection business, the Agriculture Division of the merged company will retain remaining crop protection assets, including a  portfolio in corn and soy broadleaf and grass control,  cereal weed control portfolio, DuPont’s position in disease control, and Dow AgroSciences’ insecticide portfolio.

The companies continue to work  with regulators in the remaining jurisdictions to obtain clearance for the merger.

Additional information is available at www.dowdupontunlockingvalue.com.

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