DowDuPont merger gets conditional approval in Brazil
Stefan Baumgarten
17-May-2017
HOUSTON (ICIS)–Dow
Chemical and DuPont have received conditional regulatory
approval from authorities in Brazil for their $130bn
DowDuPont merger, they said on Wednesday.
Brazil’s administrative council for economic defense (CADE)
approved the deal, subject to the divestment of a select
portion of Dow AgroSciences’ corn seed business in Brazil,
including some seed processing plants and seed research
centres, a copy of Dow AgroSciences’ Brazilian corn germplasm
bank, the Morgan brand, and a license for the use of
the Dow Seeds brand for a certain period of
time.
Implementation of the remedies in Brazil will maintain
“the strategic logic and value creation potential of the
[DowDuPont] transaction for all stakeholders”, the companies
said.
The divestments in Brazil are in addition
to previously announced divestments of certain parts
of DuPont’s global crop protection portfolio and research and
development (R&D) pipeline and organisation
and Dow’s global ethylene acrylic acid copolymers and
ionomers business, in line with commitment made to regulators
in the EU and other jurisdictions, they added.
Dow and DuPont continue to work with regulators in the
remaining relevant jurisdictions to obtain clearance for the
merger, which they are confident will be achieved, they
said.
The companies continue to expect closing the merger between 1
August and 1 September, with the intended spins of
agriculture, materials science and specialty products to
occur within 18 months of closing, they said.
The first step of the planned separation process is
expected to be the spin-off of the materials science company,
“assuming such sequencing would allow for the completion of
all intended spin-offs within 18 months of merger closing and
would not adversely impact the value of the intended
spin-offs,” they added.
Dow and DuPont first disclosed their planed merger in
December 2015.
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