DuPont to Sell Part of Herbicides Business, Dow to Sell Plastics1 year ago -
Competition and innovation concerns related to the proposed merger between DuPont and The Dow Chemical Company were addressed today when the Canadian Competition Bureau reached an agreement with both companies.
The Bureau concluded that the transaction would likely result in a substantial lessening or prevention of competition and a decrease in innovation in the supply and development of certain crop protection products and specialized packaging plastics.
To address these concerns, DuPont agreed to sell a significant part of its global herbicides business and research and development branch to FMC Corporation. The sale includes DuPont’s Canadian activities in cereal crops herbicides, as well as PrecisionPac, a popular herbicide dispensing system among Canadian farmers.
Additionally, Dow will sell its global business of certain specialized plastics products (ethylene acrylic acid copolymers and ionomers), typically used in specialized packaging applications for diverse products such as food, beverages and pharmaceuticals, to SK Global Chemical Co. LTD (SK Global), a new entrant in these markets.
“This transaction between two multi-national giants was of interest to Canadian farmers and those involved in this major economic sector,” says John Pecman, commissioner of competition. “The agreement reached today ensures that consumers and businesses continue to benefit from a dynamic marketplace which offers innovative solutions, increased choice and competitive prices.”
Following an investigation, the Bureau concluded that FMC Corporation and SK Global are acceptable buyers, as they are likely to compete effectively and support innovation in the sector in Canada. These sales by Dow and DuPont will preserve competition and innovation in the sale and development of key crop protection products and specialized packaging plastics.
The Canadian Bureau collaborated with authorities in the United States, Europe and Australia where the transaction was also subject to regulatory approval. The European Commission, the U.S Department of Justice and the Australian Competition & Consumer Commission approved the proposed transaction subject to similar conditions.