According to Bloomberg, the $ 60 billion merger of Dow Chemical and DuPont has raised concerns among European regulators whether the merger would hurt research and development spending in the agrochemical sector and could hurt innovation across the industry. The EU is therefore preparing to send a formal objection list to both companies.
According to people familiar with the matter, the EU's concerns also include chemicals used in packaging and licensing issues related to seeds. Dow and DuPont believe that innovation can be solved without hampering the deal.
Dow and DuPont stated that the merger of the two companies and then split into three separate listed companies, focusing on agriculture, materials science and professional products, will bring a cost synergy of $ 3 billion. The merger has been postponed to next year after the EU suspended its review twice and asked the two companies for more information.