DuPont and Dow Chemical Co. have won US antitrust approval to merge on condition that the companies sell certain crop protection products and other assets, Reuters reports, citing a court filing.
The asset sales required by U.S. antitrust enforcers were similar to what the companies had agreed to give up in a deal they struck with European regulators in March.
Dow and DuPont announced the deal in December 2015 in what was billed as an all-stock merger valued at US$130 billion.
According to the filing in US District Court for the District of Columbia, the assets to be sold include DuPont’s Finesse herbicide for winter wheat and Rynaxypyr insecticides, which the Justice Department said had US annual sales of more than US$100 million.
DuPont will also sell its US acid copolymers and ionomers business. The products are used to make food packaging and other goods.
The Justice Department and Federal Trade Commission, which share the work of antitrust enforcement, have reviewed or are reviewing no fewer than four deals involving corporate titans that supply US farmers.
In addition to Dow and DuPont merger deal, Bayer has a deal to buy Monsanto, and ChemChina is purchasing Syngenta. In addition, fertilizer companies Potash Corp. and Agrium are planning a merger.
After Dow completes the merger with DuPont, the companies have said that they would split into three separate companies specializing in material sciences, specialty products, and seeds and agrochemicals.
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