US state attorneys general join federal antitrust probe of DuPont - Dow Chemical merger
09 November 2016
US state attorneys general have joined a federal antitrust probe of the planned merger between DuPont and Dow Chemical, Reuters reported citing three people familiar with the matter. According to commentators, the move is likely to increase risks to a deal that could help reshape the global farm industry.
According to one of the sources, the probe would be joined by a separate group of state attorneys.
The involvement of the state attorneys general would increase scrutiny of the mega deals and wouldcomplicate what would likely be tough and lengthy reviews by US antitrust enforcers.
About seven states, including California, had joined the probe into Dow's planned merger with DuPont two people familiar with the matter said, Reuters reported.
According to one source, it is not yet clear how many states would join the Bayer-Monsanto merger investigation.
The merger prospect had led to fears among the states that the companies might increase pesticide and herbicide prices for farmers and would have less incentive to compete to introduce better and cheaper products, two of the sources said.
The sources requested that their identities not be revealed as they were not authorised to speak with the media.
Meanwhile, global anti-trust regulators continue to delay any firm decision about the $60 billion merger between The Dow Chemical Company (DOW) and E. I. du Pont de Nemours and Company Investopedia reported.
The report quoted a Bloomberg report, which said that for the third time since both companies announced their merger plans, the EC had suspended its merger review deadline, citing missing information.
The proposed marriage that would create the world's biggest chemical company was seen as a threat to competition for crop protection, seeds and a number of petrochemicals.
This latest postponement by the EU comes a month after its resumption of review of the deal, stating that both companies had fulfilled requirements to provide critical data regarding the merger.