European Commission launches in-depth investigation into Dow and DuPont merger


The European Commission (EC) has launched an in-depth investigation to review whether the proposed merger of Dow and DuPont is in line with the EU Merger Regulation.

The EC will probe further if the deal may reduce competition in areas such as crop protection, seeds and certain petrochemicals.

European Commissioner Margrethe Vestager said: “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.”

"We need to make sure that the proposed merger does not lead to higher prices or less innovation for these products.”

The merger between US-based companies Dow and DuPont would create a leading integrated crop protection and seeds company.

This deal would see the merger of two competitors with a leading herbicides and insecticides portfolio and a record of bringing crop protection and seeds products to the market.

It would also create a leading integrated producer of certain petrochemical products such as specialty polyolefins, which are thermoplastics derived from petrochemical products used in packaging and adhesive applications.

The EC is investigating the impact of eliminating one competitor and creating new vertical links in these concentrated markets.

The deal was notified to the European Commission on 22 June.

The EC has 90 working days, until 20 December, to take a decision.