U.S. Set to 'Greenlight' Dow Chemical (DOW), DuPont (DD) Merger - Source
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Antitrust regulators in the U.S. are close to approving the mega-merger between Dow Chemical (NYSE: DOW) and DuPont (NYSE: DD), according to a person claiming to have knowledge of the situation. Clearance would come despite opposition from several advocacy groups and questions raised during a U.S. Senate Judiciary Committee hearing in September.
The source indicated that a sale of Dow's copolymer unit has been the major sticking point for U.S. regulators, and additional concessions would be "modest." On Thursday Bloomberg reported that Dow hired advisors to sell the copolymer unit, confirming information provided by the tipster.
With several other high profile deals pending in the space, public opposition to the merger has so far focused primarily on Dow and DuPont's ag businesses, and not on the other two companies that will be eventually spun out, the material science business and specialty products business. Iowa Republican and chair of the recent Senate hearing described mergers in the industry as a "tsunami" and raised questions about their impact on competition. Industry executives defended the deals, claiming they won't result in higher prices for farmers.
If the merger is cleared, the deal could still potentially be scuttled by antitrust agencies outside the U.S. The European Union earlier this month restarted its review of the proposed merger after the companies submitted missing information. Regulators in China and Brazil also have to approve the deal.
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