China Conditionally Clears Merger Plan Between Dow Chemical and Dupont
May 02 2017 - 10:41PM
Dow Jones News
BEIJING--China has approved a planned merger between Dow
Chemical Co. and DuPont Co. with conditions involving the
divestment of certain products and commitments to supply Chinese
with their products.
As parts of the conditions, DuPont must divest its business
related to rice-crop insecticide ingredients, and Dow Chemical must
divest its global Ethylene Acrylic Acid copolymers and ionomers
business, the commerce ministry said in a statement Tuesday.
In addition, the two must supply Chinese companies with certain
herbicide products for rice crops over the five years after the
completion of the proposed merger, at prices no higher than the
average of the previous 12 months, the ministry said.
The two companies reaffirmed their goal of completing the merger
between August 1, 2017 and September 1, 2017, according to a joint
statement released on the website of Dow Chemical Tuesday. The
promised spin-offs will occur within 18 months of the closing of
the deal, they said.
The merger plan gained conditional approval from the European
Union in March but is still awaiting nods from other regulators,
including the U.S.'s.
-- Write to Liyan Qi at liyan.qi@wsj.com
(END) Dow Jones Newswires
May 02, 2017 22:26 ET (02:26 GMT)
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