Dow-DuPont Merger: Dow Chemical Co (DOW), DuPont (DD) Gets EU Approval

Dow Chemical Co (NYSE:DOW) and E I Du Pont De Nemours And Co (NYSE:DD) have received approval from the European Union (EU) to complete the Dow-DuPont merger.

Dow-DuPont Merger: Dow Chemical Co (DOW), DuPont (DD) Gets EU ApprovalThe Dow-DuPont merger will be allowed to go through, but there are conditions that will need to be completed first. This includes DD divesting its Cereal Broadleaf Herbicides and Chewing Insecticides portfolios.

Du Pont has agreed to divest these sections of its portfolio. The company also says that it will be divesting its Crop Protection research and development pipeline and organization as part of the Dow-DuPont merger. However it will still maintain some parts of the business, such as the seed treatment, nematicides, and late-stage R&D programs.

Dow Chemical Co and Du Pont’s plans for the merger include spinning off into three separate companies once the deal is complete. Each of these companies will be publicly traded. It is expected that the Dow-DuPont merger will result in $3 billion in cost synergies and a possible $1 billion in growth synergies.

While this approval from the EU is a step forward for the Dow-DuPont merger, the two companies will still need approval from regulators in other areas before they can complete the deal. Both Dow Chemical Co and Du Pont are hopeful that they will get this approval.

DOW stock and DD stock were both up slightly as of noon Monday, with DOW stock being up 11% year-to-date and DD stock being up 9% year-to-date.

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