Dow Chemical, DuPont to file antitrust paperwork in Brazil this month

2 August 2016. By Flavia Fortes.

Dow Chemical and rival DuPont will file paperwork for their planned deal with the Brazilian competition authority this month, MLex has learned.

The companies, who have been engaging in pre-merger notification talks with the regulator for several months, will file a full-form notification for their deal.

Companies must filed a full-form notification in Brazil when their combined market shares in overlapping markets exceed 20 percent, or when one of the companies has a 30 percent share in a vertically related market.

The Administrative Council for Economic Defense, or CADE, usually takes longer to review full-form deals, which are ineligible for fast-track processing.

CADE has 240 days to review mergers. The deadline can be extended for an additional 90 days.

Both Dow and DuPont make and supply agricultural products including seeds, herbicides, fungicides and insecticides.

The US agrochemical companies announced last December that they had agreed to an all-stock merger, creating a chemical producer with a market capitalization of $130 billion.

Unlike most deals, this transaction promises to give the shareholders of each company 50 percent of the combined business.

After melding their operations, Dow and DuPont plan to split the new business into three companies through spinoffs. One would specialize in agricultural products, another would focus on specialty products, and a third would bring together “material science” operations, including plastics and chemicals.

The merger is expected to close in the second half of 2016, with the new company headquartered in Midland, Michigan, and Wilmington, Delaware. Shares in both companies trade on the New York Stock Exchange.

	Eliot Gao