Jun. 12, 2017
Australia's competition regulator says it will not oppose a merger slated between Dow Chemical and DuPont.
The deal is subject to scrutiny from competition regulators in Europe and the USA, which will force the two companies to divest businesses and products that are too similar.
In a statement, the Australian Competition and Consumer Commission (ACCC) said because of those divestments, the merger would not threaten competition in local markets.
"The ACCC previously had concerns the proposed merger may substantially lessen competition in the supply of certain insecticides and materials science products, and reduce competitive tension in research and development of new crop protection products," ACCC commissioner Mick Keogh said.
"The ACCC considers that these competition concerns will be addressed by the global divestments and, subject to those occurring, will not oppose the merger in Australia.
"The ACCC worked closely with the European Commission, the US Department of Justice, the Canadian Competition Bureau and the New Zealand Commerce Commission in assessing this merger.
The merger will result in three companies being spun off from 'DowDuPont' — agricultural products (GM seeds and biotechnology, herbicides), material science (plastics and polymers), and specialty products (electronics, health, nutrition and bioscience products).
Dow AgroSciences employs about 230 staff in Australia and 115 in New Zealand, operating three research stations, doing field work at sites in South Australia's mid-north and the Liverpool Plains in NSW, as well as testing products at a facility in NZ.