Dow-DuPont Deal Slowed Again -- WSJ
November 05 2016 - 3:03AM
Dow Jones News
By Natalia Drozdiak
BRUSSELS -- Dow Chemical Co. and DuPont Co. hit another
roadblock on their path to gaining regulatory approval for their
proposed merger after the European Union antitrust regulator said
on Friday it suspended its review into the deal for the second
time.
The European Commission, the bloc's antitrust authority, said
the companies again didn't provide important information requested
of them. The regulator was forced to pause the review in September
for the same reason, before resuming its probe again in early
October.
"Dow and DuPont have always expected a thorough review," a Dow
spokeswoman said, adding that the companies continue to "work
constructively with the European Commission and regulatory agencies
in relevant jurisdictions."
Given the current status of the regulatory reviews, the
companies expect to close the deal in the first quarter of 2017,
the spokeswoman added.
The European Commission in August had opened an in-depth
investigation to determine whether the combination may reduce
competition in crop protection, seeds and certain
petrochemicals.
The proposed merger, disclosed in December, would unite the two
companies with a combined market cap of roughly $122 billion,
before splitting into three separate companies.
Dow and DuPont in July privately outlined concessions to EU
authorities to address antitrust concerns but the commission said
it found those remedies insufficient.
Other rivals in the agricultural sector planning to merge are
also facing delays in their reviews as regulators grapple with a
wave of consolidation in the industry taking place within a short
period.
Swiss seed and pesticide maker Syngenta AG in October said that
regulatory approval of its proposed acquisition by China National
Chemical Corp. will probably be delayed into early 2017 as
regulators seek more information amid a consolidation wave in the
sector. The companies had previously expected the deal to close
this year.
Write to Natalia Drozdiak at natalia.drozdiak@wsj.com
(END) Dow Jones Newswires
November 05, 2016 02:48 ET (06:48 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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