A decision on the Dow/DuPont merger could be delayed until next year.
Both Dow and DuPont confirmed that European regulators are extending the time they will consider the merger, media reports indicated.
DuPont spokesman Dan Turner issued the following statement:
“As a routine part of the Phase II review process, Dow and DuPont have agreed to grant the European Commission an extension of 10 working days in connection with its Phase II review. Extensions are routine occurrences under the EU Merger Regulation, and we are continuing to work constructively with the European Commission to address their concerns and to obtain clearance for the merger, which we are confident will be achieved.”
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The statement continued, “Dow and DuPont are very focused on working with the European Commission toward closing the transaction by the end of 2016. This extension represents the latest date for European Commission action under the updated timeline. In the event that the European Commission utilizes the full extension, closing would be expected to occur in the early part of 2017, subject to satisfaction of customary closing conditions, including receipt of all regulatory approvals. Dow and DuPont continue to believe the merger is pro-competitive and good for customers and consumers.”
Wall Street has not been worried about the deal falling through. DuPont’s stock price is now about $70 a share, off the March 2015 peak of $80, but well above the $55 figure in January.
The Dow/DuPont deal seemed to have a domino effect with Monsanto receiving an unsolicited merger offer from German chemical and pharma giant Bayer. Monsanto rejected the offer.
Meanwhile, European seed developer Syngenta is merging with a Chinese company, with U.S. regulators signing off on the deal.
In a surprise move, regulators announced their opposition to what seemed like a routine sale of a precision planting technology business of John Deere to Monsanto.
The Dow/DuPont deal has also drawn fire from Iowa U.S. Sen. Charles Grassley, who is planning to hold hearings on the merger.
Iowa lost out on a decision on the headquarters of an agriculture business that will be spun off after the merger of the two companies.
While the headquarters of that business will be in Delaware, Iowa will still have headquarters jobs from the combined seeds operation.
