The European Commission has approved a proposed merger of Dow and DuPont chemical companies, according to a press release on the commission's website.

"Pesticides are products that matter – to farmers, consumers and the environment," Commissioner Margrethe Vestager said in the release. "We need effective competition in this sector so companies are pushed to develop products that are ever safer for people and better for the environment. Our decision today ensures that the merger between Dow and DuPont does not reduce price competition for existing pesticides or innovation for safer and better products in the future."

The commission conducted a deep review of the merger due to concerns it would reduce competition and choices in the pesticides market. The companies will divest assets in Dow's petrochemical branch to keep the market competitive.

Only five companies, including Dow and DuPont, are globally active from research phases on through production of pesticides and similar products.

Dow and DuPont will unload much of DuPont's existing pesticide business due to concerns for unfair market share.