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Competition Bureau OKs merger between Dow and DuPont

Canada’s Competition Bureau has reached an agreement with DuPont and Dow regarding the proposed merger of the two companies.


June 30, 2017
By Competition Bureau

The Competition Bureau concluded the transaction would likely result in a substantial lessening or prevention of competition and a decrease in innovation in the supply and development of certain crop protection products and specialized packaging plastics.

To address the Bureau’s concerns, which were similar to those raised by foreign anti-trust authorities, DuPont agreed to sell a significant part of its global herbicides business and research and development (R&D) branch to FMC Corporation, an American-based chemical technologies company. The sale includes DuPont’s Canadian activities in cereal crop herbicides, as well as PrecisionPac, a popular herbicide dispensing system among Canadian farmers.

Additionally, Dow will sell its global business of certain specialized plastics products (ethylene acrylic acid copolymers and ionomers), typically used in specialized packaging applications for diverse products like food, beverages and pharmaceuticals, to SK Global Chemical Co. LTD (SK Global), a new entrant in these markets.

Following an investigation, the Bureau concluded FMC Corporation and SK Global are acceptable buyers, as they are likely to compete effectively and support innovation in the sector in Canada. These sales by Dow and DuPont will preserve competition and innovation in the sale and development of key crop protection products and specialized packaging plastics.

“This transaction between two multi-national giants was of interest to Canadian farmers and those involved in this major economic sector. The agreement reached today ensures that consumers and businesses continue to benefit from a dynamic marketplace which offers innovative solutions, increased choice and competitive prices,” said John Pecman, commissioner of competition, in a press release.

The Competition Bureau collaborated with authorities in the U.S., Europe and Australia, where the transaction was also subject to regulatory approval. The European Commission, the U.S. Department of Justice and the Australian Competition and Consumer Commission approved the proposed transaction, subject to similar conditions.