DuPont and Dow Chemical merger plan clears EU hurdle

DuPont and Dow Chemical say the 
The move is a significant step toward closing the merger transaction, with the intention for the merged entity to subsequently be spun off into three independent publicly traded companies. The transaction is expected to create significant cost synergies of about US$3 billion with the potential for US$1 billion in growth synergies.
 Longer term, the intended three-way split is expected to unlock even greater value for shareholders and customers and more opportunity for employees as each company will be “a leader in attractive segments where global challenges are driving demand for their distinctive offerings”, the companies said.
The EC’s approval is conditional on DuPont and Dow fulfilling commitments given to the EC in connection with the clearance. The companies believe the outcome of the EC review is pro-competitive and maintains the strategic logic and value creation potential of the transaction.
Specifically, DuPont will divest its Cereal Broadleaf Herbicides and Chewing Insecticides portfolios. DuPont will also divest its crop protection research and development pipeline and organisation, excluding seed treatment, nematicides, and late-stage R&D programmes, which DuPont will continue to develop and bring to market.
DuPont is in negotiations to divest the crop protection assets.