Tom Lang in Bloomberg Business: Dow Chemical, DuPont Mega-Merger Seen Skirting Antitrust Block


The $120 billion proposed tie-up between Dow Chemical Co. and DuPont Co., though it would turn the two biggest American chemical producers into one industry behemoth, should still be able to clear a U.S. antitrust review if the companies sell off a few pieces, according to lawyers and analysts.

The investigation, which would likely be conducted by the U.S. Federal Trade Commission, would focus on individual product lines where the two compete and where there are few other rivals to keep prices in check. The most significant overlaps are likely to be found in the companies’ agricultural businesses, analysts said.

"Yes, these are the two biggest chemical companies in the U.S. But you have to look at the more narrow markets where they actually compete to get a sense of the antitrust issues," said Tom Lang, an antitrust lawyer at Haynes and Boone LLP in Washington. "There are some that compete directly with one another but there are many many many that don’t."

Excerpted from Bloomberg Business. To read the full article, click here.

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