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Bates White contributes analysis in DOJ clearance of DuPont-Dow merger

September 6, 2017

The Department of Justice (DOJ) cleared the merger of E.I. DuPont de Nemours & Co. (DuPont) and Dow Chemical Company (Dow) on June 15, 2017. DuPont and Dow agreed to transfer or sell assets related to the production of several crop-protection products and two petrochemical products to resolve the agency’s concerns about the merger’s effects on competition. The companies were not required to make any additional divestitures beyond commitments they had already made to obtain the European Commission’s (EC) regulatory approval in March. The parties, which announced the deal in December 2015, closed the merger on August 31, 2017.

Bates White was retained on behalf of DuPont to analyze the competitive effects of the merger across a wide range of markets, including seeds and transgenic traits, crop protection, and petrochemicals. A team led by Drs. George Rozanski, Keith Waehrer, and Minjae Song provided analysis and assisted in responding to requests for information from agencies in multiple jurisdictions, including the United States, the EU, Canada, Brazil, and China. Bates White experts presented analyses to DOJ on numerous issues, with a focus on seeds and transgenic traits. Bates White also provided analysis in response to white papers authored by various third parties, and assessed possible divestitures. In addition, Bates White Partner and Massachusetts Institute of Technology Professor Dr. Michael Whinston presented analysis to DOJ on likely effects of the merger on innovation in markets for agricultural products.

DOJ accepted divestitures limited to agricultural chemicals and specialty polymers. DOJ’s complaint did not allege anticompetitive effects in markets for seeds or transgenic traits, nor did it allege anticompetitive effects on innovation in US crop protection markets, similar to those identified by
the EC.

For more information, read the DOJ press release.