Dow-DuPont merger gets EU green light
DuPont and The Dow Chemical Company have reached another regulatory milestone in their proposed merger of equals, announcing that the European Commission (EC) has granted conditional regulatory clearance in Europe.
According to a statement on Dow’s website, this action is a significant step toward closing the merger transaction, with the intention to subsequently spin into three independent publicly traded companies.
By combining, the companies expect to see cost savings of approximately $3 billion with the potential for $1 billion in growth synergies.
Longer term, Dow says the intended three-way split is expected to benefit not only shareholders and customers, but also offer more opportunity for employees as each company will be a leader in segments where global challenges are driving demand for their offerings.
Specifically, DuPont will divest its Cereal Broadleaf Herbicides and Chewing Insecticides portfolios. DuPont will also divest its Crop Protection research and development (R&D) pipeline and organization, excluding seed treatment, nematicides, and late-stage R&D programs, which DuPont will continue to develop and bring to market, and excluding personnel needed to support marketed products and R&D programs that will remain with DuPont. DuPont is currently in negotiations to divest the crop protection assets.
Additionally, on Feb. 2, 2017, Dow announced an agreement with SK Global Chemical Co. LTD. to divest its global Ethylene Acrylic Acid (EAA) copolymers and ionomers business. These divestitures are conditioned on Dow and DuPont closing their merger transaction, in addition to other closing conditions, including regulatory filings, local employment law and governance.
Following the divestiture of a portion of DuPont’s crop protection business, the Agriculture Division of the merged company will retain several crop protection assets.
The EC’s approval is conditional on DuPont and Dow fulfilling commitments given to the EC in connection with the clearance. The companies said they believe the outcome of the EC review "is pro-competitive and maintains the strategic logic and value creation potential of the transaction."
Sulzer, ABB pen UK service agreement for large motors and generators
Sulzer was selected to provide the U.K. market with maintenance and repair services for ABB medium and high voltage motors and generators. The agreement provides ABB customers with direct access to the specialist skills and extensive facilities of Sulzer’s service centers in Birmingham, England and Falkirk, Scotland. Sulzer will provide inspection, remedial work, modifications, repairs and rewinds of ABB’s large machines rated at 6.6 kV and above. All repairs will be completed to ABB approved standards using original spare parts.
