The Proposed $120 billion merger between Dow Chemical and DuPont should be able to clear a U.S. antitrust review if the companies sell off a few pieces, according to analysts. The potential deal would merge the two biggest U.S. chemical producers. Bloomberg reported Thursday 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. The focus will probably be on seeds and crop chemicals, according to an analyst at Bloomberg Intelligence. But even in those markets, the companies compete against rivals like Syngenta, Monsanto and Bayer.
Dow and DuPont are reportedly in late-stage talks to merge. The plan does include splitting the merged company into three, agriculture, specialty chemicals and commodity chemicals.
