MOSCOW (MRC) -- DuPont and The Dow Chemical Company have confirmed that the European Commission (EC) has initiated a Phase II review for the proposed merger of equals transaction of the two companies, reported Hydrocarbonprocessing.
As stated previously, the companies expected a thorough review and are working closely with relevant regulators, including the EC. The companies continue to believe the merger is procompetitive and good for customers and consumers.
The Phase II review is a common next step in the review process for a transaction of this size and scope under EU Merger Regulation. Under this regulation, Phase II generally provides the commission with 90 working days to review the pending transaction. Dow and DuPont will continue to work constructively with the commission to address their concerns and to obtain clearance for the merger.
On June 22, DuPont and Dow began the formal process to obtain merger approval from the European Commission by submitting the required filing to obtain regulatory clearance in connection with the proposed merger of equals. Dow and DuPont continue to expect the transaction to close by year-end 2016, subject to satisfaction of customary closing conditions, including receipt of regulatory approvals.
As MRC informed before, the deal, the largest ever in the chemicals industry, will create a USD130 billion company that combines products from both Dow and DuPont in the areas of agriculture, commodities chemicals and specialty chemicals to create the new businesses. The agreement, percolating since at least February, comes after two years of pressure from activist investors who argued that shareholders of both companies would realize greater value if they were broken up. The new company, DowDuPont, will be owned 50-50 by the current shareholders of both companies.
DuPont is an American chemical company that was founded in July, 1802. The company manufactures a wide range of chemical products, leading extensive innovative research in this field. The company is the inventor of many unique plastics and other materials, including neoprene, nylon, Teflon, Kevlar, Mylar, Tyvek, etc. DuPont was the developer and main producer of Freon used in the production of refrigeration equipment.
The Dow Chemical Company is an American multinational chemical corporation. Dow is a large producer of plastics, including polystyrene, polyurethane, polyethylene, polypropylene, and synthetic rubber. In 2014, Dow had annual sales of more than USD58 billion and employed approximately 53,000 people worldwide.
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