Two sources familiar with the deal told Reuters Wednesday that the Dow-DuPont merger is set to be approved by the European Commission.
The $130 billion-deal has come under intense scrutiny by antitrust regulators in the EU. Specifically there have been concerns that the mega merger could stymie innovation in the crop protection industry.
Last month, the Wall Street Journal reported that representatives from both companies had attended a closed-door meeting with regulators in an attempt to relieve any fears that the deal would slow the process of bringing new products to market. Other key players from the industry were reportedly in the meeting as well, including representatives from BASF, which might buy up some of Dow and DuPont’s divestments.
If the deal gets the green light, DuPont has reportedly offered to shed some of its crop protection business, including R&D assets, and Dow plans to sell its acid copolymers and ionomers business to SK Innovation in South Korea.
The sources told Reuters that the European Commission is not planning to seek third parties’ views on those proposed changes to the deal terms, which is a clear indication that the merger will be approved. The Commission is not scheduled to give the official word on the deal until April 4.
Another big deal in the industry between ChemChina and Syngenta is also expected to be approved by the EU.