NEW DELHI: Fair trade regulator CCI has concluded that the proposed merger between Dow Chemical Company and DuPont is likely to have an “appreciable adverse impact on competition”.
A public scrutiny of the mega deal has been initiated by and comments have been invited from the public.
“The Competition Commission of India (CCI) is prima facie of the opinion that the proposed combination between Dow and DuPont is likely to have an appreciable adverse effect on competition,” an official release said today.
The proposed combination is between Dow Chemical Company and E I du Pont de Nemours and Company.
Parties have already published the details of the proposed combination in various newspapers, the release issued by the Corporate Affairs Ministry said.
The CCI comes under this Ministry.
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It is rare for the Competition Commission of India (CCI) to call for a public scrutiny of a deal.
Under the DuPont-Dow Chemicals transaction, both would be combined in an all-stock merger. For the deal — which is expected to create the world’s biggest chemical and material firm — the parties had entered into a definitive agreement in December 2015.
DuPont is a leading science and engineering company with presence in various segments, including agriculture, electronics and communications, industrial bio-sciences and performance chemicals.
Dow Chemicals has interests in diverse areas such as chemicals, plastics and agricultural products.
As per CCI directive, the companies have made public details about the proposed deal.
The markets where the CCI feels that there could be adverse impact on competition are agrochemicals, seeds and material science.
E I du Pont de Nemours and Company (DuPont), the Dow Chemical Company, Diamond Merger Sub Inc and Orion Merger Sub Inc are involved in the deal.
On May 19, the regulator received a notice jointly filed by Dow Chemical Company and DuPont for the proposed combination.