The merger between Dow Chemical and DuPont has received conditional approval from China’s Ministry of Commerce.

(Wilmington, Delaware, and Midland, Michigan, USA) — DuPont (NYSE: DD) and Dow Chemical (NYSE: DOW) announced that their proposed equal merger has received conditional regulatory approval from China’s Ministry of Commerce. The approval from China’s Ministry of Commerce is contingent upon DuPont and Dow Chemical fulfilling the commitments they have already made to the Ministry. This approval marks another milestone in the companies’ global regulatory approval process for their merger, which is designed to promote competition and foster innovation. Specifically, Dow Chemical and DuPont will divest DuPont’s…

The approval from China’s Ministry of Commerce is conditional upon DuPont and Dow Chemical fulfilling the relevant commitments they have already made to the Ministry. This approval marks another step in the regulatory clearance process for the merger between the two companies, which is aimed at promoting competition globally. The merger will foster innovation and enhance competition.

Specifically, Dow Chemical and DuPont will spin off certain product portfolios, R&D pipelines, and organizational units from DuPont’s crop protection business, as well as Dow Chemical’s global ethylene acrylic copolymer and ionomer businesses. This is consistent with the commitments both companies have already made to obtain regulatory approval from the European Commission for their proposed merger.

In addition, Dow Chemical and DuPont have committed to continuing their supply and distribution of certain active ingredients and formulations of rice herbicides and insecticides in China for five years following the completion of their merger.

China is a critically important market for both Dow Chemical and DuPont, and the same holds true for the three independent companies that will emerge following the merger. The three separate companies resulting from the split will each become growth-oriented leaders in their respective high-potential niche markets, offering unique solutions to meet the substantial demand generated by global challenges. As such, the proposed split is expected to unlock significant value for all stakeholders.

Dow Chemical and DuPont will continue to engage in active cooperation with regulatory authorities in other relevant jurisdictions in order to obtain approval for the merger, and they are confident that the merger can be successfully completed. On March 27, this merger received conditional approval from the European Commission. The two companies reaffirm that the closing of the merger is expected to occur as planned between August 1, 2017, and September 1, 2017, and that the planned spin-off will be completed within 18 months following the merger’s closing. The two companies anticipate that the first step in the spin-off process will be the separation of the Materials Science business from the merged entity. They believe that this sequencing of the spin-off will facilitate the completion of the planned spin-off within 18 months after the merger’s closing and will not negatively impact the value created by the planned spin-off.

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