The proposed merger of Midland-based Dow Chemical and DuPont may soon clear a critical hurdle.
European regulators may be close to approving the $130 billion merger. The European Commission has until April to make its final decision.
Dow and DuPont officials have been working hard for months to convince European regulators to approve their merger. Those efforts may have finally paid off.
Reuters is citing sources saying the European Commission is set to approve the deal, now that the two chemical industry giants have agreed to sell certain parts of their businesses.
From Reuters:
Earlier this month, the two U.S. companies offered to sell a portion of portion of DuPont's crop protection business and related research and development, as well as Dow's acid copolymers and ionomers business. The companies fine-tuned their proposal after the European Commission received feedback from rivals and customers last week.
The deal still needs approval by regulators in the U.S., China and Brazil. But the European regulators have been seen as the toughest to convince.
Farmers and agri-business groups have raised concerns about the effect of the proposed merger. They worry about prices and competition in an agri-chemical industry that continues to consolidate.
If the Dow-DuPont merger goes through, the ultimate plan is to split the combined company into three smaller businesses. One of the companies would be based in Midland. The other two would be based in DuPont’s home state of Delaware.
Dow and DuPont officials have said they hope to finish the review process and complete the merger by this summer.
