DuPont and The Dow Chemical Co. have reached a proposed agreement with the Antitrust Division of the United States Department of Justice (DoJ) that will permit the companies to proceed with their proposed merger of equals.
“We are very pleased that the DOJ has approved this transaction,” said Andrew Liveris, Dow's chairman and chief executive officer. "With today’s DOJ clearance, we have taken a significant step forward in bringing together these two iconic enterprises, and in the subsequent intended separation into three leading, independent innovation-based science companies that will generate significant benefits for all stakeholders."
Ed Breen, Chair and CEO of DuPont, said: “With this review completed, we are on track to close our procompetitive merger in a manner that maintains the strategic logic and value creation potential of the transaction. Going forward, the intended subsequent spin-offs are expected to unlock significant value for shareholders, as we execute our plan for each company to be a growth-oriented leader in attractive segments where global challenges are generating strong demand for their distinctive offerings.”
DuPont will divest certain parts of its crop protection portfolio and Dow will divest its global Ethylene Acrylic Acid copolymers and ionomers business. The proposed agreement with the DoJ remains subject to court approval, but does not require the companies to make any additional divestitures. With this agreement, no further approvals are required in the US for the merger to close.
The companies reiterated that the merger transaction is expected to generate cost synergies of approximately US$3 billion and growth synergies of approximately US$1 billion.
To date, Dow and DuPont have obtained clearance in many jurisdictions, including approvals in the US, Europe, Brazil and China.