EU Announces In-Depth Probe into Dow-DuPont
The European Commission has opened a full-scale investigation into the proposed $130 billion merger between US chemical giants Dow Chemical and DuPont, expressing concern that the deal could reduce competition in crop protection, seeds and some petrochemicals. Another aspect, the Commission said, is that the merger, which would create the world's largest integrated crop protection and seeds company, may also hurt innovation.
„The livelihood of farmers depends on access to seeds and crop protection at competitive prices. We need to make sure that the proposed merger does not lead to higher prices or less innovation for these products,“ Competition Commissioner Margrethe Vestager said in a statement.
Dow and DuPont the EU competition agency in June, after filing with Chinese authorities a month earlier. The Commission had until Jul. 28 to either allow the merger, extend the deadline by a further 35 working days or open an in-depth investigation lasting up to 105 days It was widely expected to choose the last option.
