Dow and DuPont Receive Conditional Approval for Proposed Merger


The Dow Chemical Company has announced that China’s Ministry of Commerce (MOFCOM) has granted conditional regulatory approval of their proposed merger of equals. MOFCOM’s approval is conditional on DuPont and Dow fulfilling commitments given to MOFCOM about the clearance.

Consistent with commitments already made to obtain the European Commission’s regulatory approval for the proposed merger of equals, Dow and DuPont will divest certain parts of DuPont’s crop protection portfolio and research and development pipeline and organization and Dow’s global Ethylene Acrylic Acid copolymers and ionomers business, the companies stated. Additionally, Dow and DuPont have made commitments related to the supply and distribution in China of certain herbicide and insecticide ingredients and formulations for rice crops for five years after the closing of the proposed merger of equals.

China is a critical market for both Dow and DuPont and will be for the three intended independent companies that will be created following the merger. The intended three-way separation is expected to unlock significant value for all stakeholders as each company will be a growth-oriented leader in attractive segments where global challenges are generating strong demand for their distinctive offerings.

Per the companies, Dow and DuPont continue to work constructively with regulators in the remaining relevant jurisdictions to obtain clearance for the merger. On Mar. 27, the European Commission conditionally approved the merger. The companies expect closing of the merger to occur between Aug. 1, 2017 and Sept. 1, 2017, with the intended spin-offs to occur within 18 months of closing. The companies say the first step of the intended separation process will be the spin-off of the Materials Science Company, assuming such sequencing would allow for the completion of all intended spin-offs within 18 months of merger closing and would not adversely impact the value of the intended spin-offs.