In Delaware and Michigan, the European Commission granted DuPont and The Dow Chemical Company conditional regulatory clearance in Europe as a merger of equals. The transaction is expected to create significant cost synergies of approximately $3 billion with the potential for $1 billion in growth synergies.
The EC’s approval is conditional on DuPont and Dow fulfilling commitments given to the EC in connection with the clearance. DuPont will divest its Cereal Broadleaf Herbicides and Chewing Insecticides portfolios and its Crop Protection research and development pipeline and organization, excluding seed treatment, nematicides, and late-stage R&D programs, which DuPont will continue to develop and bring to market.
Additionally, Dow will sell its global ethylene acrylic acid copolymers and ionomers business to SK Global Chemical Co., LTD. These divestitures are conditioned on Dow and DuPont closing their merger transaction, in addition to other closing conditions, including regulatory filings, local employment law and governance.