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DuPont CEO sees 'very little' to concern regulators in Dow merger
January 26, 2016 / 5:31 PM / 2 years ago

DuPont CEO sees 'very little' to concern regulators in Dow merger

(Reuters) - DuPont DD.N Chief Executive Edward Breen said on Tuesday that there was “very little” to concern regulators about the company’s pending merger with Dow Chemical Co DOW.N and that it was unlikely to have to make significant asset sales.

Dupont and Dow plan to form a giant chemical and seed producer that would have a market value of about $95 billion at current share prices.

The combined company will then split into three businesses, focused on agriculture, materials and specialty products.

Analysts have said regulators were likely to be especially concerned about the combination of the companies’ agricultural businesses, although company executives have said their businesses have little overlap.

“We feel there is very little overlap, despite the size of the companies,” Breen reiterated in a telephone interview with Reuters on Tuesday.

DuPont has begun the process of addressing the requirements under various competition laws, Breen said earlier on a call to discuss the company’s fourth-quarter earnings, which slightly beat market expectations.

The merger is expected to close in the second half of 2016, DuPont said in the earnings statement.

DuPont shares were up 1.4 percent at $53.77 in early afternoon trading. Dow Chemical’s shares were up 1 percent at $42.62.

Reporting by Swetha Gopinath in Bengaluru; Additional reporting by Amrutha Gayathri.; Editing by Shounak Dasgupta and Ted Kerr

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