Midland, Michigan – DuPont and Dow have reached a proposed agreement with the US Department of Justice’s antitrust division. This would permit the proposed merger of equals to go ahead.
This is the latest of many regulatory hurdles which the proposed merger has had to overcome. To gain EU antitrust approval, DuPont is divesting some of its crop protection portfolio, while Dow is divesting its ethylene acrylic acid copolymers and ionomers business. The US agreement does not require any further divestitures.
“With the 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,” said Andrew Liveris, chairman and chief executive of Dow.
The merger is expected to generate cost synergies of about $3 billion, and growth synergies of about $1 billion. They hope to close the merger in August 2017, and complete the spin-offs within 18 months of the closure.