Australia and Europe against Dow Chemical, DuPont merger
The European Commission (EC) had an original deadline of December 20, 2016, to reach a decision on the proposed merger, but a September delay pushed the decision date out to February 6, 2017.
The Australian Competition and Consumer Commission has issued a Statement of Issues on the proposed merger of The Dow Chemical Company and E.l. Du Pont de Nemours and Company.
“The ACCC is concerned about the effect that the proposed merger may have on competition for a diverse range of products, including insecticides, seeds, and materials science products,” ACCC Chairman Rod Sims said.
“Dow and DuPont may be the only suppliers, or potential suppliers, of ionomer and acid co-polymer materials to plastics manufacturers in Australia. The merger would remove competition between them, potentially to the detriment of Australian customers.”
“The proposed merger may also reduce the competitive tension in the research and development of new crop protection products. It could therefore reduce the rate at which new products come onto the market. This is especially significant where pests have developed resistance to older chemical controls,” Sims said. ■