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Dow, DuPont Merger Wins Antitrust Approval With Conditions

According to a court filing on Thursday, CNBC News (June 16) reports, the planned mega-merger of DuPont Co. and Dow Chemical Co. won U.S. antitrust approval on the condition that the companies sell certain crop protection products and other assets. The deal between the two chemical manufacturing titans was announced near the end of 2015 in what was billed as an all-stock merger valued at $130 billion.

Bloomberg (June 15, McLaughlin, Kaskey) notes that winning U.S. antitrust approval for the $73 billion merger was one of the last remaining hurdles to a deal that would create a global chemicals giant. The companies announced that the assets they agreed to sell to win approval did not go beyond what they had already agreed to with other jurisdictions. "DuPont will sell off some of its herbicide and insecticide products and Dow will unload a plastics packaging unit," according to a settlement filed Thursday in federal court and cited by Bloomberg. This so-called merger of equals is one of three major transactions that would reshape the global agrochemicals industry if approved by regulators worldwide. Bayer AG is seeking approval to purchase Monsanto Co., while China National Chemical Corp.'s agreement to acquire Syngenta AG is nearing completion. "If cleared, the transactions together would consolidate the industry into four major players, including BASF SE," states the publication.

The Houston Chronicle (June 16) points out that the U.S. approval of the Dow-DuPont tie-up comes on the heels of the European Union's clearance of the deal back at the end of this year's first quarter. Brazil