by Ken Root & Whitney Flach
The Dow DuPont Merger, approved by the stockholders of both companies, is not a done deal. The US Justice Department is ready to enforce Anti Trust laws against the merged entity. Iowa’s senior senator seems pleased.
The Justice Department says it will enforce anti-trust law in the proposed Dow-DuPont merger, according to the Chair of the Senate Judiciary Committee, which is Iowa Republican Chuck Grassley. He says, he’s gotten a response back from Justice Department to his earlier letter asking for a thorough antitrust review of the proposed Dow-DuPont merger.
Grassley explains, the seed industry is on the brink of a “massive realignment” if the Dow-DuPont and ChemChina-Syngenta deals are completed, along with the acquisition talks by Bayer to purchase Monsanto.
“If these transactions are completed in the same year the industry would be substantially transformed. The current structure of the six major seed and chemical companies would be reduced to only four. One of which, would be owned by the Chinese government, Grassley says.”
Dow-DuPont would control 76% of the corn seed market and 66% of the soybean seed market. Stockholders, voted last week to join the two agribusiness and chemical giants this year.
Grassley says, he is still considering on whether or not to hold hearings on the merger. He held a hearing last December on the acquisition of Miller Beer by a German brewer.
Short of blocking the Dow-DuPont merger, Grassley says the Justice Department could modify the deal, as done so when Tyson was forced to sell off its sow buying unit in a deal with Hillshire Farms.