The European Commission has conditionally approved a proposed merger between chemical companies Dow and DuPont, overcoming competition and innovation concerns with agreements for DuPont to divest of some of its business.
Prior to it s decision, the commission was concerned that the merger as
initially structured would not leave enough competition in the pesticide
market, reducing price and choice competition. The commission was also
concerned with reduced pressure on the companies to innovate to create better
products – currently the two companies are among five that have a global
presence involved in the entire research and development process.
To address the commission’s concerns, the companies have agreed that
DuPont will divest its pesticide business and most of its research and
"Pesticides are products that matter – to farmers, consumers and
the environment,” said Commissioner Margrethe Vestager, who presides over competition policy. “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."
EC OKs Dow-DuPont merger with caveats