Midland, Michigan – The latest step in the proposed merger of Dow and DuPont comes with an agreement between the two companies and Canada’s Competition Bureau.
The bureau concluded that divestments are required as the deal is likely to cause a substantial reduction or prevention of competition, and decrease innovation in the development and supply of some specialised packaging plastics and crop protection products. These concerns are in line of those expressed by anti-trust authorities in the US, Europe and Australia, who collaborated with the Canadian bureau.
The divestment of some of Dow’s copolymer and ionomer products to SK Global Chemical, and much of DuPont’s herbicides operations to FMC, had already been announced to meet concerns of the other authorities. The bureau decided these buyers are acceptable, as they are likely to compete effectively and support innovation in Canada.
‘The agreement ensures that consumers and businesses continue to benefit from a dynamic marketplace which offers innovative solutions, increased choice and competitive prices,’ said John Pecman, commissioner of competition in Canada.
The boards of the two companies have commissioned McKinsey to assist in a comprehensive portfolio review ahead of the expected split of the merged company into three new businesses within 18 months of the merger, which is expected to occur in August.