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CCI seeks public scrutiny of DuPont-Dow Chemicals merger deal

Press Trust of India  |  New Delhi 

Fair trade regulator CCI has sought public scrutiny of the mega deal involving DuPont and Dow Chemicals.

The decision comes after the watchdog concluded that "prima facie" the deal could adversely impact competition in the markets concerned.

It is rare for the Competition Commission of (CCI) to call for a public scrutiny of a deal.

Under the DuPont-Dow Chemicals transaction, both will be combined in an all-stock 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.

Both have good presence in

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.

If CCI is of "prima facie opinion that the combination has, or is likely to have, an appreciable adverse effect on competition", then the deal is put up for public scrutiny.

This is to bring it to the knowledge of the "public and persons affected or likely to be affected by such combination", as per a public notice.

In compliance with the CCI directive, the companies have made public details about the proposed deal.

The public notice has been issued to ascertain whether the deal could have any adverse impact on competition.

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 Sub Inc and Orion Merger Sub Inc are involved in the deal.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, March 20 2017. 18:43 IST