Farming News - EU regulators halt Dow-DuPont merger review

EU regulators halt Dow-DuPont merger review


EU competition authorities have called a temporary halt to their review of the proposed merger between US chemical companies Dow and DuPont, both of which have significant agriculture portfolios, while they await further information in response to antitrust concerns.

The EU Commission opened an investigation into the $130 billion deal in August, in response to concerns that the deal would create the world’s largest seeds and ag-chem company (a prospect now rivalled by Bayer’s planned acquisition of Monsanto).

On Friday, a Commission spokesperson told news agency Reuters that the EU executive has activated a procedure use when merger parties do not provide an important piece of information. Dow and DuPont want to finalise their deal by early next year, and had previously supplied the regulator with information, which was deemed insufficient.

The Commission has not disclosed any information on the data it is seeking from the companies and has yet to announce when its review will conclude.

The merger, just one in a recent slew of takeovers and consolidation announcements in the sector, has received negative attention as farmers fear it will affect their choice and position in the supply chain. However, a US corn growers’ union produced a report earlier this year suggesting that a merger could produce an effective rival to market leader Monsanto in the US.