Antitrust Law Daily Wrap Up, ACQUISITIONS & MERGERS NEWS: Senator Grassley urges careful review of proposed Dow-DuPont merger, (Jun 15, 2016)
Organizations Mentioned:Bayer AG | Dow Chemical Co.
By Jody Coultas, J.D.
Senator Chuck Grassley of Iowa on Tuesday sent a letter to the Department of Justice Antitrust Division asking for a careful analysis of the proposed merger of Dow Chemical Co. and DuPont Co. and its impact on the agricultural biotechnology and seed industry.
The parties intend to merge and then split into three independent, publicly traded companies focusing on agriculture, material science and specialty products. The proposed transaction, estimated at $130 billion, would result in the largest biotechnology and seed firm in the United States.
The merger comes as several biotech and seed companies have announced potential mergers (ChemChina and Syngenta AG) and merger discussions (Monsanto Co. and Bayer AG). Grassley expressed concern that this transaction will decrease competition in an agriculture sector, raise barriers to entry in the market for smaller companies, and harm innovation. The proposed transaction could also adversely impact choice and price of products for farmers and consumers, according to Grassley.
Grassley, who chairs the Senate’s Judiciary Committee, urged the Antitrust Division to conduct a careful analysis of the proposed transaction to ensure that the agricultural biotechnology and seed industry is not impacted in an adverse way, considering the current backdrop of proposed mergers.
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