MOSCOW (MRC) -- The Australian Competition and Consumer Commission (ACCC) will not oppose the proposed merger of The Dow Chemical Company (Dow) and E.l. Du Pont de Nemours and Company (DuPont), said ACCC on its site.
On 27 March 2017 the European Commission cleared the proposed merger, subject to divestiture of major parts of DuPont's global pesticide business and global research and development organisation. Separately Dow will also divest its acid co-polymers and ionomers business.
"The ACCC previously had concerns the proposed merger may substantially lessen competition in the supply of certain insecticides and materials science products and reduce competitive tension in research and development of new crop protection products," ACCC Commissioner Mick Keogh said.
"The ACCC considers that these competition concerns will be addressed by the global divestments and, subject to those occurring, will not oppose the merger in Australia."
"The ACCC worked closely with the European Commission, the U.S. Department of Justice, the Canadian Competition Bureau and the New Zealand Commerce Commission in assessing this merger. As the remedies provided to other regulators have resolved competition concerns in Australia, the ACCC has taken a pragmatic approach and not sought standalone remedies in Australia," Mr Keogh said.
The ACCC began an investigation into the effect the global merger would have on the Australian market in 2016 and published a Statement of Issues outlining preliminary competition concerns in November 2016.
As MRC informed before, Dow and DuPont announced their merger on 11 December 2015. The parties requested an ACCC informal review of the transaction on 27 June 2016. 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.
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.