Farms.com Home   Ag Industry News

DowDuPont merger approved by European Union

Merger could be completed by late 2017

By Diego Flammini
Assistant Editor, North American Content
Farms.com

The European Commission (EC), the European Union’s (EU) top regulatory agency, conditionally approved the merger between Dow and DuPont.

The approval is contingent upon Dow and DuPont to divest itself of certain portfolios.

“DuPont will divest itself of its cereal broadleaf herbicides and chewing insecticides portfolios,” the companies said in a release. "DuPont will also divest 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…”

Dow will divest itself of its acid copolymers and ionomers businesses.

The EC outlined three concerns surrounding the merger:

1.     Reducing competition in a number of markets for existing pesticides,

2.     Reducing innovation competition for pesticides, and

3.     Reducing competition for certain petrochemical products.

Dow and DuPont offered a set of commitments to address the European Commissions’ concerns.

The agricultural companies said they would preserve price and innovation competition in pesticide markets and preserve competition for certain petrochemical products.

 In its ruling, the EC said it continues to examine the proposed acquisition of Syngenta by ChemChina.


Trending Video

Funds Ditch Ag Commodities, Chase Stocks Amid an End to Middle East War, & Trade Deal Buzz

Video: Funds Ditch Ag Commodities, Chase Stocks Amid an End to Middle East War, & Trade Deal Buzz


The 12-day war between Iran-Israel came to an end sending crude oil futures plunging as the big fund speculators removed the war risk premium.

The weather risk premium in the Ag complex is sending corn, wheat and soybean futures lower on month-end selling ahead of the market moving USDA quarterly grain stocks and acreage reports on June 30th.

Instead, funds were chasing and sending tech stocks higher with the S&P 500/NASDAQ indexes setting new all-time record highs!

June 1 USDA Hogs and pigs report was slightly bearish while the U.S. $ Index traded to new contract lows as the de-dollarization that began in 2014 continues.

Feed in the form of soybean meal futures for livestock producers got cheaper, trading to new contract lows.

The Stats Canada seeded acreage update was bullish canola and wheat.