Jan. 25, 2017
DuPont indicated on Tuesday that its US$130-billion merger with Dow Chemical Co will take longer to wrap up than previously expected as the companies await regulatory approvals.
This is the second time that the two companies, which are in talks with the European Union antitrust regulators, have had to push back the expected completion.
The EU regulators earlier this week gave the companies 10 more working days in connection with the ongoing review and set a March 14 deadline.
The regulators were mainly concerned about the companies’ crop protection businesses and DuPont “has been focused on a remedy package”, a company executive said on a post-earnings call. He did not provide further details.
The merger will create the world’s largest crop protection and seeds company, triggering regulatory concerns that it may reduce competition in these areas.
The deal, announced in December 2015, is now expected to close in the first half of the year. The companies had previously hoped to close the transaction in the first quarter.
DuPont, which also reported a better-than-expected profit for the sixth straight quarter, said it continued to have constructive discussions with regulators in key jurisdictions.
DuPont’s shares were up 2.4 percent at $74.54 in early trading, while Dow’s stock rose 2 percent to $58.29.
DuPont said on Tuesday it expected an 18 percent drop in first-quarter profit due to a charge of 15 cents per share related to the Dow deal.