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 development business.
 
"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."