Dow and DuPont are hoping that offers to sell assets will put to ease concerns the European Union has over the two companies’ merger. The European Union’s deadline for making a decision about the merger is now sitting at April 4, instead of March 14.
The European Union will likely contact customers of Dow and DuPont to obtain feedback about the offer to sell assets. It will also likely speak with rivals of the two companies. Top concerns include increased prices and less development of new pesticides after the merger. The two companies are still planning to complete the merger during the first half of 2017.
“The remedies include proposed divestment of a portion of DuPont’s crop protection business and associated research and development, as well as Dow’s acid copolymers and ionomers business,” Dow told Reuters in an email.
The merger between the two would result in a company with roughly $120 billion in market capitalization. However, the new company will then split off into three separate companies. It plans to complete this process 18 months after it finishes the initial merger.
The merger plans between the two companies have already been delayed by concerns from the European Union. The two companies were originally planning to complete the merger process in late 2016. Plans to merge were first announced by the two companies back in December of 2015.
DOW stock and DD stock remained largely unmoved as of Wednesday afternoon.