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Agrichemical giant DuPont has revealed it is to sell a portion of its crop protection business to FMC, the US chemical manufacturing company, in a bid to secure the go-ahead for its merger with Dow, and will receive $1.6bn as part of an asset-swap deal with FMC.
Brussels cleared the $145bn merger of Dow Chemical and DuPont on Monday on the condition that the companies agreed to sell substantial parts of their business to assuage the European Commission’s fears of a lack of competition in the market.
DuPont said on Friday it had agreed to an asset swap with FMC, which will see it divest a portion of its crop protection business and acquire FMC’s health and nutrition business. Dow will receive $1.6bn as part of the deal to reflect the difference in the value of the assets.
The company also said it now expects the deal to close between August 1st and September 1st – having previously said they expected it to conclude by the end of June – to accommodate the requirements of this transaction.
DuPont said the divestiture “will satisfy [its] commitments to the European Commission in connection with its regulatory clearance of the merger with Dow.”
Dow must also sell off parts of their business. The merger is also awaiting approval in other markets.